REG-TotalEnergies SE TotalEnergies SE: Second Quarter and First Half 2024 Results
25/07/2024 07:30
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240725:nBw5kNlsya&default-theme=true
TotalEnergies SE: Second Quarter and First Half 2024 Results
With close to $10 billion adjusted net income in the first half, TotalEnergies
advances its balanced transition strategy, with the support from its employees
and shareholders
TotalEnergies SE (Paris:TTE) (LSE:TTE) (NYSE:TTE):
2Q24 Change 1H24 Change
vs 1Q24
vs 1H23
Net income (TotalEnergies share) (B$) 3.8 -34% 9.5 -1%
Adjusted net income (TotalEnergies share)((1))
- in billions of dollars (B$) 4.7 -9% 9.8 -15%
- in dollars per share 1.98 -8% 4.14 -10%
Adjusted EBITDA((1)) (B$) 11.1 -4% 22.6 -11%
Cash flow from operations excluding working capital (CFFO)((1)) (B$) 7.8 -5% 15.9 -12%
Cash flow from operating activities (B$) 9.0 x4.2 11.2 -26%
The Board of Directors of TotalEnergies SE, chaired by CEO Patrick Pouyanné,
met on July 24, 2024, to approve the second quarter 2024 financial statements.
On the occasion, Patrick Pouyanné said:
“TotalEnergies generated robust financial results in the second quarter,
with adjusted net income of $4.7 billion and cash flow of $7.8 billion
resulting in first half adjusted net income and cash flow of close to $10
billion and $16 billion, respectively.
During the first half of 2024, TotalEnergies has completed important steps in
advancing the balanced transition strategy presented to shareholders at our
Investor Day in September 2023:
* within the Oil & Gas pillar, TotalEnergies took final investment decision
on several Upstream projects that are the stepping stones to achieve its
objectives of growing upstream production by 2-3%/year and growing underlying
cash flow: Kaminho in Angola, Sépia 2 and Atapu 2 in Brazil, Marsa LNG in
Oman and the Ubeta gas project in Nigeria that supplies Nigeria LNG;
* within the Integrated Power pillar, TotalEnergies has fortified its Integrated
Power portfolio with the acquisition of several flexible assets that allow the
Company to extract maximum value out of its renewable assets in three key
markets: CCGTs in Texas and the UK, and a renewables aggregator and battery
developer in Germany.
During the second quarter, upstream production was 2.44 Mboe/d, benefiting
from high availability of production facilities. Exploration & Production
posted $2.7 billion of adjusted net operating income and $4.4 billion of cash
flow, in line with the evolution of the oil and gas price environment. The
Company further highgraded its portfolio, notably through acquisitions in
Malaysia and deep offshore Congo, and divestments of mature assets in Nigeria,
Congo, the UK and in Brunei.
Integrated LNG posted adjusted net operating income and cash flow of $1.2
billion this quarter, reflecting the average LNG price. TotalEnergies actively
continues to increase medium-term oil exposure within its LNG portfolio by
signing two new mid-term Brent-indexed LNG sales contracts in Asia for 1.3
Mt/y.
Integrated Power reported adjusted net operating income of $0.5 billion and
cash flow of $0.6 billion with a return on capital employed above 10%. First
half 2024 cash flow is $1.3 billion, in line with the annual guidance of more
than $2.5 billion.
Downstream posted adjusted net operating income of $1.0 billion and cash flow
of $1.8 billion, wherein the less favorable refining margin environment was
partially compensated by higher refinery utilization and sequential results
from marketing activities benefitting from cheaper supply.
During the quarter, TotalEnergies successfully issued conventional senior
bonds on the US market totalling $4.25 billion, with a 27-year average
maturity. The Board of Directors decided to retain flexibility on the format
of its senior bonds issuances while also prioritizing long maturity.
Comforted by robust results at mid-year, in line with 2024 objectives, the
Board of Directors decided to maintain the second interim dividend at 0.79
€/share for fiscal year 2024, an increase close to 7% compared to 2023, and
authorized the Company to buy back shares for up to $2 billion in the third
quarter of 2024.
The Board also highlighted the recent success of the Capital increase reserved
for employees, which brings TotalEnergies’ employee ownership to more than
8% of the Company’s share capital, and the strong shareholder support for
all the resolutions submitted to vote at the Annual General Meeting.”
1. Highlights ((2))
Social and environmental responsibility
* Ambition of giving access to clean cooking to 100 million people in Africa and
India by 2030, announced at the Clean Cooking Summit organized by the IEA in
Paris,
* Partnership with SLB on digital innovation and solarization, for a more
sustainable energy
Upstream
* Production start-up of Eldfisk North and Kristin South in Norway
* Launch of Kaminho, a 70,000 b/d oil project in the Kwanza basin, in Angola
* Launch of Sépia 2 and Atapu 2, two 225,000 b/d oil projects in Brazil
* Agreement on field development areas and securing of the FPSO hull in Block 58
in Suriname, key milestones toward a Final Investment Decision that is
expected in the second half of 2024
* Agreements with OMV and Sapura Upstream Assets to acquire 100% of SapuraOMV,
an independent gas producer and operator, in Malaysia
* Agreement with Trident Energy for the acquisition of an additional 10%
interest in the Moho field and disposal of Nkossa in Congo
* Agreement with Chappal Energies for the divestment from the 10% interest in
the SPDC JV in Nigeria, while retaining gas economical interest to ensure NLNG
gas supply
* Agreement with Hibiscus Petroleum Berhad for the divestment of the subsidiary
in Brunei
* Agreement with The Prax Group for the divestment from the West of Shetland gas
assets in the United Kingdom
* Acquisition of an interest in an offshore exploration block, in Sao Tome and
Principe
Downstream
* Acquisition of Tecoil, a lubricant used oil regeneration specialist based in
Finland
Integrated LNG
* Launch of the 1 Mt/y Marsa LNG project, a fully electrified and very
low-emission (3 kg CO(2)/boe) LNG plant in Oman, supplied by a 300 MW solar
farm
* Entry in Ruwais LNG, a low-emission LNG project in the United Arab Emirates
* Launch of the Ubeta onshore gas development to supply Nigeria LNG
* Acquisition of interests in the Dorado leases in the Eagle Ford shale gas play
in Texas
* Signature of two LNG contracts to Asia: 0.8 Mt/y over 10 years to IOCL in
India and 0.5 Mt/y over 5 years to Korea South East Power in South Korea
Integrated Power
* Acquisition of a 1.3 GW gross capacity CCGT in the United Kingdom
* Award of a maritime lease to develop a 1.5 GW offshore wind farm in Germany
* Launch of a 100 MW battery storage project developed by Kyon Energy in Germany
* Launch of a joint-venture with SSE to grow electric mobility in the UK and
Ireland
Decarbonization and low-carbon molecules
* Agreement with Air Products for delivery of 70 kt/y of green hydrogen over 15
years, in the large-scale tender launched by the Company to decarbonize its
European refineries
* Acquisition of 50% of a 795 MW offshore wind farm in the Netherlands, to
produce green hydrogen to decarbonize TotalEnergies’ European refineries
2. Key figures from TotalEnergies’ consolidated financial statements ((1))
2Q24 1Q24 2Q23 2Q24 In millions of dollars, except effective tax rate, 1H24 1H23 1H24
vs earnings per share and number of shares
vs
2Q23
1H23
11,073 11,493 11,105 - Adjusted EBITDA ((1)) 22,566 25,272 -11%
5,339 5,600 5,582 -4% Adjusted net operating income from business segments 10,939 12,575 -13%
2,667 2,550 2,349 +14% Exploration & Production 5,217 5,002 +4%
1,152 1,222 1,330 -13% Integrated LNG 2,374 3,402 -30%
502 611 450 +12% Integrated Power 1,113 820 +36%
639 962 1,004 -36% Refining & Chemicals 1,601 2,622 -39%
379 255 449 -16% Marketing & Services 634 729 -13%
636 621 662 -4% Contribution of equity affiliates to adjusted net income 1,257 1,741 -28%
40.4% 37.8% 37.3% Effective tax rate ((3)) 39.0% 39.7%
4,672 5,112 4,956 -6% Adjusted net income (TotalEnergies share) ((1)) 9,784 11,497 -15%
1.98 2.14 1.99 -1% Adjusted fully-diluted earnings per share (dollars) ((4)) 4.14 4.61 -10%
1.85 1.97 1.84 +1% Adjusted fully-diluted earnings per share (euros) ((5)) 3.82 4.27 -11%
2,328 2,352 2,448 -5% Fully-diluted weighted-average shares (millions) 2,333 2,460 -5%
3,787 5,721 4,088 -7% Net income (TotalEnergies share) 9,508 9,645 -1%
4,410 4,072 4,271 +3% Organic investments ((1)) 8,482 7,704 +10%
220 (500) 320 -31% Acquisitions net of assets sales ((1)) (280) 3,307 ns
4,630 3,572 4,591 +1% Net investments ((1)) 8,202 11,011 -26%
7,777 8,168 8,485 -8% Cash flow from operations excluding working capital (CFFO) ((1)) 15,945 18,106 -12%
7,895 8,311 8,596 -8% Debt Adjusted Cash Flow (DACF) ((1)) 16,207 18,371 -12%
9,007 2,169 9,900 -9% Cash flow from operating activities 11,176 15,033 -26%
Gearing ((1)) of 10.2% at June 30, 2024 vs. 10.5% at March 31, 2024 and 11.1% at June 30, 2023
3. Key figures of environment, greenhouse gas emissions and production
3.1 Environment – liquids and gas price realizations, refining margins
2Q24 1Q24 2Q23 2Q24 1H24 1H23 1H24
vs
vs
2Q23
1H23
85.0 83.2 78.1 +9% Brent ($/b) 84.1 79.7 +6%
2.3 2.1 2.3 - Henry Hub ($/Mbtu) 2.2 2.5 -13%
9.7 8.7 10.5 -8% NBP ($/Mbtu) 9.2 13.3 -31%
11.2 9.3 10.9 +3% JKM ($/Mbtu) 10.3 13.7 -25%
81.0 78.9 72.0 +13% Average price of liquids ((6),(7)) ($/b) 79.9 72.7 +10%
Consolidated subsidiaries
5.05 5.11 5.98 -16% Average price of gas ((6),(8)) ($/Mbtu) 5.08 7.48 -32%
Consolidated subsidiaries
9.32 9.58 9.84 -5% Average price of LNG ((6),(9)) ($/Mbtu) 9.46 11.59 -18%
Consolidated subsidiaries and equity affiliates
44.9 71.7 40.1 +12% European Refining Margin Marker (ERM) ((6),(10)) ($/t) 58.3 65.5 -11%
3.2 Greenhouse gas emissions ((11))
2Q24 1Q24 2Q23 2Q24 Scope 1+2 emissions (MtCO2e) 1H24 1H23 1H24
vs
vs
2Q23
1H23
7.7 8.2 9.1 -15% Scope 1+2 from operated facilities ((12)) 15.9 18.2 -13%
7.0 7.1 8.0 -13% of which Oil & Gas 14.1 15.6 -10%
0.7 1.1 1.1 -36% of which CCGT 1.8 2.6 -31%
10.8 11.6 12.5 -14% Scope 1+2 - equity share 22.5 25.3 -11%
Estimated quarterly emissions.
Scope 1+2 emissions from operated installations were down 6%
quarter-to-quarter, thanks to the continuous decline in flaring emissions on
Exploration & Production facilities and to the lower gas-fired power
plants utilization rate in Europe in a context of lower demand.
2Q24 1Q24 2Q23 2Q24 Methane emissions (ktCH4) 1H24 1H23 1H24
vs
vs
2Q23
1H23
7 8 8 -13% Methane emissions from operated facilities 15 18 -17%
8 9 10 -20% Methane emissions - equity share 17 21 -19%
Estimated quarterly emissions.
Scope 3 emissions (MtCO2e) 1H24 2023
Scope 3 from Oil, Biofuels and Gas Worldwide ((13)) est. 170 355
3.3 Production ((14))
2Q24 1Q24 2Q23 2Q24 Hydrocarbon production 1H24 1H23 1H24
vs
vs
2Q23
1H23
2,441 2,461 2,471 -1% Hydrocarbon production (kboe/d) 2,451 2,498 -2%
1,318 1,322 1,416 -7% Oil (including bitumen) (kb/d) 1,320 1,407 -6%
1,123 1,139 1,055 +6% Gas (including condensates and associated NGL) (kboe/d) 1,131 1,091 +4%
2,441 2,461 2,471 -1% Hydrocarbon production (kboe/d) 2,451 2,498 -2%
1,477 1,482 1,571 -6% Liquids (kb/d) 1,480 1,567 -6%
5,180 5,249 4,845 +7% Gas (Mcf/d) 5,215 5,017 +4%
Hydrocarbon production was 2,441 thousand barrels of oil equivalent per day in
the second quarter 2024, down 1% quarter-to-quarter, due to higher planned
maintenance, notably in the North Sea.
Hydrocarbon production in the second quarter 2024 was up 3% year-on-year
(excluding Canada) and was comprised of:
* +2% due to projects start-ups and ramp-ups, including Mero 2 in Brazil, Block
10 in Oman, Tommeliten Alpha and Eldfisk North in Norway, Akpo West in Nigeria
and Absheron in Azerbaijan,
* +1% portfolio effect related to entry in the producing fields of Ratawi in
Iraq and Dorado in the United States, partially offset by the divestment from
Dunga in Kazakhstan,
* +3% due to the higher availability of production facilities,
* -3% due to the natural field decline.
When taking into account the Canadian oil sands assets disposals, production
was down 1% year-on-year.
4. Analysis of business segments
4.1 Exploration & Production
4.1.1 Production
2Q24 1Q24 2Q23 2Q24 Hydrocarbon production 1H24 1H23 1H24
vs
vs
2Q23
1H23
1,943 1,969 2,033 -4% EP (kboe/d) 1,956 2,047 -4%
1,413 1,419 1,512 -7% Liquids (kb/d) 1,416 1,506 -6%
2,829 2,937 2,778 +2% Gas (Mcf/d) 2,883 2,895 -
4.1.2 Results
2Q24 1Q24 2Q23 2Q24 In millions of dollars, except effective tax rate 1H24 1H23 1H24
vs
vs
2Q23
1H23
2,667 2,550 2,349 +14% Adjusted net operating income 5,217 5,002 +4%
207 145 149 +39% including adjusted income from equity affiliates 352 284 +24%
46.9% 48.5% 49.7% - Effective tax rate ((15)) 47.7% 53.9% -
2,585 2,041 2,424 +7% Organic investments ((1)) 4,626 4,558 +1%
57 36 176 -68% Acquisitions net of assets sales ((1)) 93 2,114 -96%
2,642 2,077 2,600 +2% Net investments ((1)) 4,719 6,672 -29%
4,353 4,478 4,364 - Cash flow from operations excluding working capital (CFFO) ((1)) 8,831 9,271 -5%
4,535 3,590 4,047 +12% Cash flow from operating activities 8,125 8,583 -5%
Exploration & Production adjusted net operating income was $2,667 million
in the second quarter 2024, up 5% quarter-to-quarter, driven by higher oil
prices that were partially compensated by lower gas realizations and
production.
Cash flow from operations excluding working capital (CFFO) was $4,353 million
in the second quarter 2024, down 3% quarter-to-quarter. The difference in
quarterly variation between adjusted net operating income and CFFO is mainly
linked to the tax impact of an overlift position at the end of the quarter in
Norway.
4.2 Integrated LNG
4.2.1 Production
2Q24 1Q24 2Q23 2Q24 Hydrocarbon production for LNG 1H24 1H23 1H24
vs
vs
2Q23
1H23
498 492 438 +14% Integrated LNG (kboe/d) 495 451 +10%
64 63 59 +10% Liquids (kb/d) 64 61 +5%
2,351 2,312 2,067 +14% Gas (Mcf/d) 2,332 2,122 +10%
2Q24 1Q24 2Q23 2Q24 Liquefied Natural Gas in Mt 1H24 1H23 1H24
vs
vs
2Q23
1H23
8.8 10.7 11.0 -20% Overall LNG sales 19.5 22.0 -12%
3.6 4.2 3.6 - incl. Sales from equity production* 7.8 7.6 +3%
7.6 9.3 10.0 -24% incl. Sales by TotalEnergies from equity production and third party purchases 16.9 19.9 -15%
* The Company’s equity production may be sold by TotalEnergies or by the
joint ventures.
Hydrocarbon production for LNG in the second quarter 2024 was up 1%
quarter-to-quarter, notably linked to the entry into the Dorado gas field
(Eagle Ford basin) in the United States early in the second quarter 2024.
LNG sales decreased by 18% quarter-to-quarter, notably due to lower spot
purchases, in a context of lower LNG demand in Europe.
4.2.2 Results
2Q24 1Q24 2Q23 2Q24 In millions of dollars, except the average price of LNG 1H24 1H23 1H24
vs
vs
2Q23
1H23
9.32 9.58 9.84 -5% Average price of LNG ($/Mbtu) * 9.46 11.59 -18%
Consolidated subsidiaries and equity affiliates
1,152 1,222 1,330 -13% Adjusted net operating income 2,374 3,402 -30%
421 494 432 -3% including adjusted income from equity affiliates 915 1,218 -25%
624 540 382 +63% Organic investments ((1)) 1,164 779 +49%
198 (12) 205 -3% Acquisitions net of assets sales ((1)) 186 964 -81%
822 528 587 +40% Net investments ((1)) 1,350 1,743 -23%
1,220 1,348 1,801 -32% Cash flow from operations excluding working capital (CFFO) ((1)) 2,568 3,882 -34%
431 1,710 1,332 -68% Cash flow from operating activities 2,141 4,868 -56%
* Sales in $ / Sales in volume for consolidated and equity affiliates. Does
not include LNG trading activities.
Integrated LNG adjusted net operating income was $1,152 million in the second
quarter 2024, down 6% quarter-to-quarter, linked to lower LNG prices and
sales. Moreover, gas trading did not fully benefit in markets characterized by
lower volatility than during first half of 2023.
Cash flow from operations excluding working capital (CFFO) was $1,220 million
in the second quarter 2024, down 9% quarter-to-quarter, for the same reasons.
4.3 Integrated Power
4.3.1 Productions, capacities, clients and sales
2Q24 1Q24 2Q23 2Q24 Integrated Power 1H24 1H23 1H24
vs
vs
2Q23
1H23
9.1 9.6 8.2 +10% Net power production (TWh) * 18.6 16.6 +12%
6.8 6.0 4.2 +61% o/w production from renewables 12.8 8.1 +59%
2.2 3.6 4.0 -44% o/w production from gas flexible capacities 5.8 8.5 -32%
19.6 19.5 13.2 +48% Portfolio of power generation net installed capacity (GW) ** 19.6 13.2 +48%
13.8 13.7 8.9 +54% o/w renewables 13.8 8.9 +54%
5.8 5.8 4.3 +35% o/w gas flexible capacities 5.8 4.3 +35%
87.4 84.1 74.7 +17% Portfolio of renewable power generation gross capacity (GW) **,*** 87.4 74.7 +17%
24.0 23.5 19.0 +26% o/w installed capacity 24.0 19.0 +26%
6.0 6.0 6.0 - Clients power - BtB and BtC (Million) ** 6.0 6.0 -
2.8 2.8 2.8 - Clients gas - BtB and BtC (Million) ** 2.8 2.8 -
11.1 14.9 11.5 -4% Sales power - BtB and BtC (TWh) 26.0 27.0 -4%
18.9 35.7 19.2 -1% Sales gas - BtB and BtC (TWh) 54.6 56.4 -3%
* Solar, wind, hydroelectric and gas flexible capacities.
** End of period data.
*** Includes 20% of Adani Green Energy Ltd’s gross capacity, 50% of Clearway
Energy Group’s gross capacity and 49% of Casa dos Ventos’ gross capacity.
Net power production was 9.1 TWh in the second quarter 2024, down 5%
quarter-to-quarter and linked to lower production from flexible gas assets due
to lower demand in Europe, partially compensated by production from renewable
sources, which was up 13%.
Gross installed renewable power generation capacity reached 24.0 GW at the end
of the second quarter 2024, up 0.5 GW quarter-to-quarter and including 0.2 GW
installed in the United States and 0.2 GW in India.
4.3.2 Results
2Q24 1Q24 2Q23 2Q24 In millions of dollars 1H24 1H23 1H24
vs
vs
2Q23
1H23
502 611 450 +12% Adjusted net operating income 1,113 820 +36%
35 (39) 23 +52% including adjusted income from equity affiliates (4) 79 ns
596 943 753 -21% Organic investments ((1)) 1,539 1,330 +16%
(88) 735 (42) ns Acquisitions net of assets sales ((1)) 647 477 +36%
508 1,678 711 -29% Net investments ((1)) 2,186 1,807 +21%
623 692 491 +27% Cash flow from operations excluding working capital (CFFO) ((1)) 1,315 931 +41%
1,647 (249) 2,284 -28% Cash flow from operating activities 1,398 999 +40%
Integrated Power adjusted net operating income was $502 million in the second
quarter 2024, up 12% year-on-year, reflecting activity growth. The decrease in
adjusted net operating income quarter-to-quarter reflects in particular the
seasonality of electricity demand in Europe.
Cash flow from operations excluding working capital (CFFO) was $623 million,
up 27% year-on-year and down 10% quarter-to-quarter, for the same reasons.
Integrated Power adjusted net operating income was $1,113 million in the first
half 2024, up 36% year-on-year reflecting activity growth.
Cash flow from operations excluding working capital (CFFO) was $1,315 million,
up 41% year-on-year, for the same reason.
4.4 Downstream (Refining & Chemicals and Marketing & Services)
4.4.1 Results
2Q24 1Q24 2Q23 2Q24 In millions of dollars 1H24 1H23 1H24
vs
vs
2Q23
1H23
1,018 1,217 1,453 -30% Adjusted net operating income 2,235 3,351 -33%
568 520 686 -17% Organic investments ((1)) 1,088 976 +11%
56 (1,258) (19) ns Acquisitions net of assets sales ((1)) (1,202) (248) ns
624 (738) 667 -6% Net investments ((1)) (114) 728 ns
1,776 1,770 2,085 -15% Cash flow from operations excluding working capital (CFFO) ((1)) 3,546 4,274 -17%
3,191 (2,237) 2,588 +23% Cash flow from operating activities 954 1,064 -10%
4.5 Refining & Chemicals
4.5.1 Refinery and petrochemicals throughput and utilization rates
2Q24 1Q24 2Q23 2Q24 Refinery throughput and utilization rate* 1H24 1H23 1H24
vs
vs
2Q23
1H23
1,511 1,424 1,472 +3% Total refinery throughput (kb/d) 1,468 1,437 +2%
430 382 364 +18% France 406 360 +13%
636 618 601 +6% Rest of Europe 627 598 +5%
446 424 507 -12% Rest of world 435 479 -9%
84% 79% 82% Utilization rate based on crude only** 82% 80%
* Includes refineries in Africa reported in the Marketing & Services
segment.
** Based on distillation capacity at the beginning of the year.
2Q24 1Q24 2Q23 2Q24 Petrochemicals production and utilization rate 1H24 1H23 1H24
vs
vs
2Q23
1H23
1,248 1,287 1,157 +8% Monomers* (kt) 2,535 2,452 +3%
1,109 1,076 963 +15% Polymers (kt) 2,185 2,074 +5%
79% 73% 67% Steam cracker utilization rate** 76% 71%
* Olefins.
** Based on olefins production from steam crackers and their treatment
capacity at the start of the year, excluding Lavera (divested) from 2(nd)
quarter 2024.
Refining throughput was up 6% quarter-to-quarter in the second quarter, mainly
due to lower planned maintenance. Utilization rate was 84.5% in the second
quarter 2024.
4.5.2 Results
2Q24 1Q24 2Q23 2Q24 In millions of dollars, except ERM 1H24 1H23 1H24
vs
vs
2Q23
1H23
44.9 71.7 40.1 +12% European Refining Margin Marker (ERM) ($/t) * 58.3 65.5 -11%
639 962 1,004 -36% Adjusted net operating income 1,601 2,622 -39%
382 419 454 -16% Organic investments ((1)) 801 652 +23%
(95) (20) (15) ns Acquisitions net of assets sales ((1)) (115) (10) ns
287 399 439 -35% Net investments ((1)) 686 642 +7%
1,117 1,291 1,329 -16% Cash flow from operations excluding working capital (CFFO) ((1)) 2,408 3,062 -21%
1,541 (2,129) 1,923 -20% Cash flow from operating activities (588) 1,072 ns
* This market indicator for European refining, calculated based on public
market prices ($/t), uses a basket of crudes, petroleum product yields and
variable costs representative of the European refining system of
TotalEnergies. Does not include oil trading activities.
Refining & Chemicals adjusted net operating income was $639 million in the
second quarter 2024, down 34% quarter-to-quarter, due to lower refining
margins mainly in Europe (ERM was down 37% quarter-to-quarter) and the Middle
East that were partially compensated by the increase in the refineries’
utilization rate.
Cash flow from operations excluding working capital (CFFO) was $1,117 million,
down 13% quarter-to-quarter, for the same reasons.
4.6 Marketing & Services
4.6.1 Petroleum product sales
2Q24 1Q24 2Q23 2Q24 Sales in kb/d* 1H24 1H23 1H24
vs
vs
2Q23
1H23
1,363 1,312 1,397 -2% Total Marketing & Services sales 1,338 1,379 -3%
773 715 799 -3% Europe 744 778 -4%
591 597 598 -1% Rest of world 594 600 -1%
* Excludes trading and bulk refining sales.
Sales of petroleum products in the second quarter 2024 were down year-on-year
by 2%, mainly due to lower diesel demand in Europe that was partially
compensated by higher activity in the aviation business.
4.6.2 Results
2Q24 1Q24 2Q23 2Q24 In millions of dollars 1H24 1H23 1H24
vs
vs
2Q23
1H23
379 255 449 -16% Adjusted net operating income 634 729 -13%
186 101 232 -20% Organic investments ((1)) 287 324 -11%
151 (1,238) (4) ns Acquisitions net of assets sales ((1)) (1,087) (238) ns
337 (1,137) 228 +48% Net investments ((1)) (800) 86 ns
659 479 756 -13% Cash flow from operations excluding working capital (CFFO) ((1)) 1,138 1,212 -6%
1,650 (108) 665 x2.5 Cash flow from operating activities 1,542 (8) ns
Marketing & Services adjusted net operating income was $379 million for
the second quarter 2024, up 49% quarter-to-quarter, benefiting from higher
margins due to lower refining margins.
Cash flow from operations excluding working capital (CFFO) was $659 million in
the second quarter 2024, up 38% quarter-to-quarter for the same reason.
5. TotalEnergies results
5.1 Adjusted net operating income from business segments
Adjusted net operating income from business segments was:
* $5,339 million in the second quarter 2024 versus $5,600 million in the first
quarter 2024, mainly due to lower refining margins,
* $10,939 million in the first half 2024 versus $12,575 million in the first
half 2023, linked to lower refining margins, and lower gas and LNG prices.
5.2 Adjusted net income ((1)) (TotalEnergies share)
TotalEnergies adjusted net income was $4,672 million in the second quarter
2024 versus $5,112 million in the first quarter 2024, mainly due to lower
refining margins.
Adjusted net income excludes the after-tax inventory effect, special items and
the impact of changes in fair value.
Adjustments to net income( )were ($885) million in the second quarter 2024
consisting mainly of ($0.3) billion in inventory effects and ($0.3) billion in
effects of changes in fair value.
TotalEnergies’ average tax rate was:
* 40.4% in the second quarter 2024 versus 37.8% in the first quarter 2024,
notably due to the increase in the relative weight of Upstream in the
Company’s results,
* 39.0% in the first half 2024 versus 39.7% a year ago, notably due to a lower
Exploration & Production tax rate that is linked to lower European gas
prices.
5.3 Adjusted earnings per share
Adjusted diluted net earnings per share were:
* $1.98 in the second quarter 2024, based on 2,328 million weighted average
diluted shares, compared to $2.14 in the first quarter 2024,
* $4.14 in the first half 2024, based on 2,333 million weighted average diluted
shares, compared to $4.61 a year ago,
As of June 30, 2024, the number of diluted shares was 2,328 million.
TotalEnergies repurchased:
* 28.1 million shares in the second quarter 2024 for $2 billion,
* 58.7 million shares in the first half 2024 for $4 billion.
5.4 Acquisitions – asset sales
Acquisitions were:
* $544 million in the second quarter 2024, primarily related to the acquisitions
of a 20% interest in the Dorado gas field in the United States and of the
German renewable energy aggregator Quadra Energy,
* $1,618 million in the first half 2024, related to the above elements as well
as the acquisition of 1.5 GW of flexible gas capacity in Texas, battery
storage developer Kyon in Germany, and Talos Low Carbon Solutions, in the
carbon storage industry in the United States.
Divestments were
* $324 million in the second quarter 2024, primarily related to the farmdown of
the Seagreen offshore wind farm in the United Kingdom and the sale of
petrochemical assets in Lavera, France,
* $1,898 million in the first half 2024, related to the above elements as well
as the closing of the retail network transaction with Alimentation Couche-Tard
in Belgium, Luxemburg, and the Netherlands, and the sale of a 15% interest in
Absheron, in Azerbaijan.
5.5 Net cash flow ((1))
TotalEnergies' net cash flow( )was:
* $3,147 million in the second quarter 2024 compared to $4,596 million in the
first quarter 2024, reflecting the $391 million decrease in CFFO and the
$1,058 million increase in net investments to $4,630 million in the second
quarter 2024,
* $7,743 million in the first half 2024 compared to $7,095 million a year ago,
reflecting the $2,161 million decrease in CFFO and the $2,809 million decrease
in net investments to $8,202 million in the first half 2024,
2024 second quarter cash flow from operating activities was $9,007 million
versus CFFO of $7,777 million, and was impacted by a decrease in working
capital of $1.2 billion, mainly due to:
* $0.5 billion stock effect at the end of the quarter,
* ($1.7) billion decrease in working capital, of which ($0.6) billion linked to
the seasonality of the gas and power retail business.
5.6 Profitability
Return on equity was 18.7% for the twelve months ended June 30, 2024.
In millions of dollars July 1, 2023 April 1, 2023 July 1, 2022
June 30, 2024 March 31, 2024 June 30, 2023
Adjusted net income ((1)) 21,769 22,047 29,351
Average adjusted shareholders' equity 116,286 115,835 116,329
Return on equity (ROE) 18.7% 19.0% 25.2%
Return on average capital employed ((1)) was 16.6% for the twelve months ended
June 30, 2024.
In millions of dollars July 1, 2023 April 1, 2023 July 1, 2022
June 30, 2024 March 31, 2024 June 30, 2023
Adjusted net operating income ((1)) 23,030 23,278 30,776
Average capital employed ((1)) 138,776 140,662 137,204
ROACE ((1)) 16.6% 16.5% 22.4%
6. TotalEnergies SE statutory accounts
Net income for TotalEnergies SE, the parent company, amounted to:
* €4,555 million in the second quarter 2024, compared to €4,851 million in
the second quarter 2023,
* €7,965 million in the first half 2024, compared to €7,040 million in the
first half 2023,
7. Annual 2024 Sensitivities ((16))
Change Estimated impact on adjusted net operating income Estimated impact on cash flow from operations
Dollar +/- 0.1 $ per € -/+ 0.1 B$ ~0 B$
Average liquids price ((17)) +/- 10 $/b +/- 2.3 B$ +/- 2.8 B$
European gas price - NBP / TTF +/- 2 $/Mbtu +/- 0.4 B$ +/- 0.4 B$
European Refining Margin Marker (ERM) +/- 10 $/t +/- 0.4 B$ +/- 0.5 B$
8. Outlook
Brent prices remain above $80/b at the start of the third quarter, with the
OPEC+ countries having declared in early June 2024 the intention to continue
their policy to sustain a stable oil market.
Global refining margins, which have sharply decreased since the end of the
first quarter 2024, remain impacted by low diesel demand in Europe, as well as
by the market normalization following the disruption in Russian supply.
Given the lower seasonal demand in Europe, European gas prices are expected to
be between $8 and $10/Mbtu in the third quarter 2024. However, in a context of
supply tensions, Asian LNG prices are above $12/Mbtu, supported by higher
demand, notably in China and India. Given the evolution of oil and gas prices
in recent months and the lag effect on price formulas, TotalEnergies
anticipates that its average LNG selling price should be around $10/Mbtu in
the third quarter 2024.
Third quarter 2024 hydrocarbon production is expected to be between 2.4 and
2.45 Mboe/d. Start-up of Anchor, in the US Gulf of Mexico, is expected in the
third quarter.
The third quarter 2024 refining utilization rate is anticipated to be above
85%, benefiting from the restart of the Donges refinery in France.
The Company confirms net investments guidance of $17-$18 billion in 2024, of
which $5 billion are dedicated to Integrated Power.
* * * *
To listen to the conference call with Chairman & CEO Patrick Pouyanné and
CFO Jean-Pierre Sbraire today at 2:30pm (Paris time), please log on to
totalenergies.com
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Ftotalenergies.com&esheet=54099235&newsitemid=20240724325948&lan=en-US&anchor=totalenergies.com&index=1&md5=70e7c9d3472686cb4fad50a9b0621ee2)
or dial +33 (0) 1 70 91 87 04, +44 (0) 12 1281 8004 or +1 718 705 8796. The
conference replay will be available on the Company's website totalenergies.com
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Ftotalenergies.com&esheet=54099235&newsitemid=20240724325948&lan=en-US&anchor=totalenergies.com&index=2&md5=736beda2e1cc617d95997ef038fb19c9)
after the event.
* * * *
9. Operating information by segment
9.1 Company’s production (Exploration & Production + Integrated LNG)
2Q24 1Q24 2Q23 2Q24 Combined liquids and gas 1H24 1H23 1H24
vs production by region (kboe/d)
vs
2Q23
1H23
561 570 537 +5% Europe 566 559 +1%
449 463 481 -7% Africa 456 488 -6%
825 815 767 +7% Middle East and North Africa 820 743 +10%
358 352 443 -19% Americas 355 442 -20%
248 261 243 +2% Asia-Pacific 254 266 -4%
2,441 2,461 2,471 -1% Total production 2,451 2,498 -2%
359 346 338 +6% includes equity affiliates 352 341 +3%
2Q24 1Q24 2Q23 2Q24 Liquids production by region (kb/d) 1H24 1H23 1H24
vs
vs
2Q23
1H23
225 224 227 -1% Europe 225 231 -3%
325 331 359 -9% Africa 328 365 -10%
660 652 615 +7% Middle East and North Africa 656 596 +10%
167 171 268 -38% Americas 168 266 -37%
100 104 102 -1% Asia-Pacific 103 109 -6%
1,477 1,482 1,571 -6% Total production 1,480 1,567 -6%
150 154 153 -2% includes equity affiliates 152 152 -
2Q24 1Q24 2Q23 2Q24 Gas production by region (Mcf/d) 1H24 1H23 1H24
vs
vs
2Q23
1H23
1,814 1,869 1,671 +9% Europe 1,841 1,774 +4%
620 648 610 +2% Africa 634 612 +4%
904 896 834 +8% Middle East and North Africa 900 803 +12%
1,061 1,003 976 +9% Americas 1,032 985 +5%
781 833 754 +4% Asia-Pacific 808 843 -4%
5,180 5,249 4,845 +7% Total production 5,215 5,017 +4%
1,127 1,043 1,004 +12% includes equity affiliates 1,085 1,029 +5%
9.2 Downstream (Refining & Chemicals and Marketing & Services)
2Q24 1Q24 2Q23 2Q24 Petroleum product sales by region (kb/d) 1H24 1H23 1H24
vs
vs
2Q23
1H23
1,840 1,774 1,709 +8% Europe 1,807 1,655 +9%
558 591 599 -7% Africa 575 633 -9%
989 1,033 918 +8% Americas 1,011 883 +14%
639 711 665 -4% Rest of world 675 644 +5%
4,026 4,109 3,892 +3% Total consolidated sales 4,068 3,815 +7%
397 401 424 -7% Includes bulk sales 399 405 -2%
2,266 2,397 2,070 +9% Includes trading 2,331 2,031 +15%
2Q24 1Q24 2Q23 2Q24 Petrochemicals production* (kt) 1H24 1H23 1H24
vs
vs
2Q23
1H23
900 990 1,026 -12% Europe 1,890 2,073 -9%
756 645 619 +22% Americas 1,401 1,226 +14%
702 727 475 +48% Middle East and Asia 1,430 1,228 +16%
* Olefins, polymers.
9.3 Integrated Power
9.3.1 Net power production
2Q24 1Q24
Net power production (TWh) Solar Onshore Wind Offshore Wind Gas Others Total Solar Onshore Wind Offshore Wind Gas Others Total
France 0.2 0.2 - 0.4 0.0 0.8 0.1 0.2 - 1.8 0.0 2.2
Rest of Europe 0.1 0.4 0.4 0.4 0.1 1.4 0.1 0.6 0.6 0.7 0.1 2.0
Africa 0.0 0.0 - - - 0.0 0.0 0.0 - - - 0.0
Middle East 0.3 - - 0.2 - 0.5 0.2 - - 0.3 - 0.5
North America 0.9 0.6 - 1.2 - 2.8 0.5 0.5 - 0.7 - 1.8
South America 0.1 0.8 - - - 0.9 0.2 0.7 - - - 0.8
India 1.9 0.4 - - - 2.2 1.6 0.2 - - - 1.8
Pacific Asia 0.4 0.0 0.0 - - 0.5 0.3 0.0 0.1 - - 0.4
Total 3.9 2.3 0.5 2.2 0.1 9.1 2.9 2.3 0.7 3.6 0.1 9.6
9.3.2 Installed power generation net capacity
2Q24 1Q24
Installed power generation net capacity (GW) ((18)) Solar Onshore Wind Offshore Wind Gas Others Total Solar Onshore Wind Offshore Wind Gas Others Total
France 0.6 0.4 - 2.6 0.1 3.7 0.6 0.4 - 2.6 0.1 3.7
Rest of Europe 0.3 0.9 0.3 1.4 0.1 2.9 0.3 0.9 0.6 1.4 0.1 3.2
Africa 0.1 0.0 - - 0.0 0.1 0.1 0.0 - - 0.0 0.1
Middle East 0.4 - - 0.3 - 0.8 0.4 - - 0.3 - 0.7
North America 2.3 0.8 - 1.5 0.4 5.0 2.2 0.8 - 1.5 0.3 4.9
South America 0.4 0.9 - - - 1.2 0.4 0.9 - - - 1.2
India 4.2 0.5 - - - 4.7 4.0 0.5 - - - 4.5
Pacific Asia 1.1 0.0 0.1 - 0.0 1.2 1.0 0.0 0.1 - 0.0 1.1
Total 9.3 3.5 0.4 5.8 0.7 19.6 9.0 3.5 0.7 5.8 0.6 19.5
9.3.3 Power generation gross capacity from renewables
2Q24 1Q24
Installed power generation gross capacity from renewables (GW) ((19),(20)) Solar Onshore Wind Offshore Wind Other Total Solar Onshore Wind Offshore Wind Other Total
France 1.1 0.7 - 0.2 2.0 0.9 0.7 - 0.1 1.7
Rest of Europe 0.3 1.1 1.1 0.2 2.7 0.3 1.1 1.1 0.2 2.7
Africa 0.1 - - 0.0 0.1 0.1 0.0 - 0.0 0.2
Middle East 1.2 - - - 1.2 1.2 - - - 1.2
North America 5.2 2.2 - 0.7 8.1 5.2 2.2 - 0.6 8.0
South America 0.4 1.3 - - 1.6 0.4 1.2 - - 1.6
India 5.9 0.5 - - 6.5 5.8 0.5 - - 6.3
Asia-Pacific 1.5 - 0.3 - 1.8 1.5 0.0 0.3 0.0 1.8
Total 15.7 5.8 1.4 1.1 24.0 15.4 5.7 1.4 1.0 23.5
2Q24 1Q24
Power generation gross capacity from renewables in construction (GW) ((19),(20)) Solar Onshore Wind Offshore Wind Other Total Solar Onshore Wind Offshore Wind Other Total
France 0.1 0.0 0.0 0.0 0.2 0.1 - 0.0 0.0 0.2
Rest of Europe 0.4 0.2 - 0.1 0.6 0.4 0.0 - 0.1 0.5
Africa 0.3 - - 0.1 0.4 0.3 - - 0.1 0.4
Middle East 0.1 - - - 0.1 0.1 - - - 0.1
North America 1.7 0.0 - 0.3 2.0 1.6 0.0 - 0.2 1.8
South America 0.0 0.6 - - 0.7 0.0 0.7 - 0.0 0.7
India 0.5 0.1 - - 0.5 0.6 0.1 - - 0.6
Asia-Pacific 0.0 0.0 0.4 - 0.4 0.1 0.0 0.4 - 0.4
Total 3.2 0.9 0.4 0.4 5.0 3.1 0.8 0.4 0.4 4.8
2Q24 1Q24
Power generation gross capacity from renewables in development (GW) ((19),(20)) Solar Onshore Wind Offshore Wind Other Total Solar Onshore Wind Offshore Wind Other Total
France 1.4 0.4 - 0.1 1.9 1.2 0.4 - 0.0 1.6
Rest of Europe 4.4 0.8 8.9 2.2 16.4 4.4 0.5 7.4 1.8 14.2
Africa 0.7 0.3 - - 1.0 1.4 0.3 - 0.0 1.7
Middle East 1.8 - - - 1.8 1.7 - - - 1.7
North America 9.7 2.9 4.1 4.4 21.1 10.3 3.1 4.1 4.8 22.3
South America 2.1 1.2 - 0.2 3.4 1.5 1.2 - 0.1 2.8
India 4.5 0.2 - - 4.7 4.5 0.2 - - 4.7
Asia-Pacific 3.4 1.1 2.6 1.1 8.2 3.2 0.1 2.6 1.0 6.9
Total 28.0 6.8 15.6 8.0 58.5 28.2 5.8 14.1 7.7 55.9
10. Alternative Performance Measures (Non-GAAP measures)
10.1 Adjustment items to net income (TotalEnergies share)
2Q24 1Q24 2Q23 In millions of dollars 1H24 1H23
3,787 5,721 4,088 Net income (TotalEnergies share) 9,508 9,645
(274) 805 (377) Special items affecting net income (TotalEnergies share) 531 (536)
(110) 1,507 - Gain (loss) on asset sales 1,397 203
(11) - (5) Restructuring charges (11) (5)
- (644) (469) Impairments (644) (529)
(153) (58) 97 Other (211) (205)
(320) 124 (380) After-tax inventory effect : FIFO vs. replacement cost (196) (771)
(291) (320) (111) Effect of changes in fair value (611) (545)
(885) 609 (868) Total adjustments affecting net income (276) (1,852)
4,672 5,112 4,956 Adjusted net income (TotalEnergies share) 9,784 11,497
10.2 Reconciliation of adjusted EBITDA with consolidated financial statements
10.2.1 Reconciliation of net income (TotalEnergies share) to adjusted EBITDA
2Q24 1Q24 2Q23 2Q24 In millions of dollars 1H24 1H23 1H24
vs
vs
2Q23
1H23
3,787 5,721 4,088 -7% Net income (TotalEnergies share) 9,508 9,645 -1%
885 (609) 868 +2% Less: adjustment items to net income (TotalEnergies share) 276 1,852 -85%
4,672 5,112 4,956 -6% Adjusted net income (TotalEnergies share) 9,784 11,497 -15%
- - - - Adjusted items - - -
67 100 61 +10% Add: non-controlling interests 167 135 +24%
2,977 2,991 2,715 +10% Add: income taxes 5,968 6,805 -12%
2,962 2,942 2,959 - Add: depreciation, depletion and impairment of tangible assets and mineral interests 5,904 5,985 -1%
87 92 92 -5% Add: amortization and impairment of intangible assets 179 191 -6%
725 708 724 - Add: financial interest on debt 1,433 1,434 -
(417) (452) (402) ns Less: financial income and expense from cash & cash equivalents (869) (775) ns
11,073 11,493 11,105 - Adjusted EBITDA 22,566 25,272 -11%
10.2.2 Reconciliation of revenues from sales to adjusted EBITDA and net income
(TotalEnergies share)
2Q24 1Q24 2Q23 2Q24 In millions of dollars 1H24 1H23 1H24
vs
vs
2Q23
1H23
Adjusted items
49,183 51,883 51,458 -4% Revenues from sales 101,066 109,767 -8%
(31,314) (33,525) (33,379) ns Purchases, net of inventory variation (64,839) (70,858) ns
(7,664) (7,580) (7,754) ns Other operating expenses (15,244) (15,506) ns
(97) (88) (62) ns Exploration costs (185) (156) ns
146 240 116 +26% Other income 386 193 +100%
(37) (125) (164) ns Other expense, excluding amortization and impairment of intangible assets (162) (202) ns
433 282 401 +8% Other financial income 715 649 +10%
(213) (215) (173) ns Other financial expense (428) (356) ns
636 621 662 -4% Net income (loss) from equity affiliates 1,257 1,741 -28%
11,073 11,493 11,105 - Adjusted EBITDA 22,566 25,272 -11%
Adjusted items
(2,962) (2,942) (2,959) ns Less: depreciation, depletion and impairment of tangible assets and mineral interests (5,904) (5,985) ns
(87) (92) (92) ns Less: amortization of intangible assets (179) (191) ns
(725) (708) (724) ns Less: financial interest on debt (1,433) (1,434) ns
417 452 402 +4% Add: financial income and expense from cash & cash equivalents 869 775 +12%
(2,977) (2,991) (2,715) ns Less: income taxes (5,968) (6,805) ns
(67) (100) (61) ns Less: non-controlling interests (167) (135) ns
(885) 609 (868) ns Add: adjustment (TotalEnergies share) (276) (1,852) ns
3,787 5,721 4,088 -7% Net income (TotalEnergies share) 9,508 9,645 -1%
10.3 Investments – Divestments (TotalEnergies share)
Reconciliation of Cash flow used in investing activities to Net investments
2Q24 1Q24 2Q23 2Q24 In millions of dollars 1H24 1H23 1H24
vs
vs
2Q23
1H23
4,558 3,467 4,473 +2% Cash flow used in investing activities ( a ) 8,025 10,835 -26%
- - - ns Other transactions with non-controlling interests ( b ) - - ns
(29) 3 18 ns Organic loan repayment from equity affiliates ( c ) (26) 12 ns
- - 35 -100% Change in debt from renewable projects financing ( d ) * - 38 -100%
97 103 64 +52% Capex linked to capitalized leasing contracts ( e ) 200 124 +61%
4 (1) 1 x4 Expenditures related to carbon credits ( f ) 3 2 +50%
4,630 3,572 4,591 +1% Net investments ( a + b + c + d + e + f = g - i + h ) 8,202 11,011 -26%
220 (500) 320 -31% of which acquisitions net of assets sales ( g-i ) (280) 3,307 ns
544 1,074 482 +13% Acquisitions ( g ) 1,618 3,738 -57%
324 1,574 162 +99% Asset sales ( i ) 1,898 431 x4.4
- - (35) -100% Change in debt from renewable projects (partner share) - (38) -100%
4,410 4,072 4,271 +3% of which organic investments ( h ) 8,482 7,704 +10%
101 145 328 -69% Capitalized exploration 247 533 -54%
589 538 366 +61% Increase in non-current loans 1,127 740 +52%
(178) (146) (84) ns Repayment of non-current loans, excluding organic loan repayment from equity affiliates (324) (313) ns
- - - ns Change in debt from renewable projects (TotalEnergies share) - - ns
* Change in debt from renewable projects (TotalEnergies share and partner
share).
10.4 Cash flow (TotalEnergies share)
Reconciliation of Cash flow from operating activities to Cash flow from
operations excluding working capital (CFFO), to DACF and to Net cash flow
2Q24 1Q24 2Q23 2Q24 In millions of dollars 1H24 1H23 1H24
vs
vs
2Q23
1H23
9,007 2,169 9,900 -9% Cash flow from operating activities ( a ) 11,176 15,033 -26%
1,669 (6,121) 1,720 -3% (Increase) decrease in working capital ( b ) * (4,452) (2,269) ns
(468) 125 (252) ns Inventory effect ( c ) (343) (754) ns
- - 35 -100% Capital gain from renewable project sales ( d ) - 38 -100%
(29) 3 18 ns Organic loan repayments from equity affiliates ( e ) (26) 12 ns
7,777 8,168 8,485 -8% Cash flow from operations excluding working capital (CFFO) ( f = a - b - c + d + e ) 15,945 18,106 -12%
(118) (143) (112) ns Financial charges (262) (265) ns
7,895 8,311 8,596 -8% Debt Adjusted Cash Flow (DACF) 16,207 18,371 -12%
4,410 4,072 4,271 +3% Organic investments ( g ) 8,482 7,704 +10%
3,367 4,096 4,213 -20% Free cash flow after organic investments ( f - g ) 7,463 10,402 -28%
4,630 3,572 4,591 +1% Net investments ( h ) 8,202 11,011 -26%
3,147 4,596 3,894 -19% Net cash flow ( f - h ) 7,743 7,095 +9%
* Changes in working capital are presented excluding the mark-to-market effect
of Integrated LNG and Integrated Power segments’ contracts.
10.5 Gearing ratio
In millions of dollars 06/30/2024 03/31/2024 06/30/2023
Current borrowings * 9,358 16,068 13,980
Other current financial liabilities 461 481 443
Current financial assets * , ** (6,425) (5,969) (6,397)
Net financial assets classified as held for sale * (61) (11) (41)
Non-current financial debt * 34,726 30,452 33,387
Non-current financial assets * (1,166) (1,165) (1,264)
Cash and cash equivalents (23,211) (25,640) (25,572)
Net debt ( a ) 13,682 14,216 14,536
Shareholders’ equity (TotalEnergies share) 117,379 118,409 113,682
Non-controlling interests 2,648 2,734 2,770
Shareholders' equity (b) 120,027 121,143 116,452
Gearing = a / ( a+b ) 10.2% 10.5% 11.1%
Leases (c) 8,012 8,013 8,090
Gearing including leases ( a+c ) / ( a+b+c ) 15.3% 15.5% 16.3%
* Excludes leases receivables and leases debts.
** Including initial margins held as part of the Company's activities on
organized markets.
10.6 Return on average capital employed
Twelve months ended June 30, 2024
In millions of dollars Exploration & Production Integrated LNG Integrated Power Refining & Chemicals Marketing & Services Company
Adjusted net operating income 11,157 5,172 2,146 3,633 1,363 23,030
Capital employed at 06/30/2023 68,530 34,598 17,804 9,698 8,796 137,372
Capital employed at 06/30/2024 65,809 38,708 21,861 8,728 6,954 140,180
ROACE 16.6% 14.1% 10.8% 39.4% 17.3% 16.6%
10.7 Payout
In millions of dollars 1H24 1H23 2023
Dividend paid (parent company shareholders) 3,756 3,686 7,517
Repayment of treasury shares 4,013 4,105 9,167
Payout ratio 45% 42% 46%
GLOSSARY
Acquisitions net of assets sales is a non-GAAP financial measure and its most
directly comparable IFRS measure is Cash flow used in investing activities.
Acquisitions net of assets sales refer to acquisitions minus assets sales
(including other operations with non-controlling interests). This indicator
can be a valuable tool for decision makers, analysts and shareholders alike
because it illustrates the allocation of cash flow used for growing the
Company’s asset base via external growth opportunities.
Adjusted EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization)
is a non-GAAP financial measure and its most directly comparable IFRS measure
is Net Income. It refers to the adjusted earnings before depreciation,
depletion and impairment of tangible and intangible assets and mineral
interests, income tax expense and cost of net debt, i.e., all operating income
and contribution of equity affiliates to net income. This indicator can be a
valuable tool for decision makers, analysts and shareholders alike to measure
and compare the Company’s profitability with utility companies (energy
sector).
Adjusted net income (TotalEnergies share) is a non-GAAP financial measure and
its most directly comparable IFRS measure is Net Income (TotalEnergies share).
Adjusted Net Income (TotalEnergies share) refers to Net Income (TotalEnergies
share) less adjustment items to Net Income (TotalEnergies share). Adjustment
items are inventory valuation effect, effect of changes in fair value, and
special items. This indicator can be a valuable tool for decision makers,
analysts and shareholders alike to evaluate the Company’s operating results
and to understand its operating trends by removing the impact of
non-operational results and special items.
Adjusted net operating income is a non-GAAP financial measure and its most
directly comparable IFRS measure is Net Income. Adjusted Net Operating Income
refers to Net Income before net cost of net debt, i.e., cost of net debt net
of its tax effects, less adjustment items. Adjustment items are inventory
valuation effect, effect of changes in fair value, and special items. Adjusted
Net Operating Income can be a valuable tool for decision makers, analysts and
shareholders alike to evaluate the Company’s operating results and
understanding its operating trends, by removing the impact of non-operational
results and special items and is used to evaluate the Return on Average
Capital Employed (ROACE) as explained below.
Capital Employed is a non-GAAP financial measure. They are calculated at
replacement cost and refer to capital employed (balance sheet) less inventory
valuations effect. Capital employed (balance sheet) refers to the sum of the
following items: (i) Property, plant and equipment, intangible assets, net,
(ii) Investments & loans in equity affiliates, (iii) Other non-current
assets, (iv) Working capital which is the sum of: Inventories, net, Accounts
receivable, net, other current assets, Accounts payable, Other creditors and
accrued liabilities(v) Provisions and other non-current liabilities and (vi)
Assets and liabilities classified as held for sale. Capital Employed can be a
valuable tool for decision makers, analysts and shareholders alike to provide
insight on the amount of capital investment used by the Company or its
business segments to operate. Capital Employed is used to calculate the Return
on Average Capital Employed (ROACE).
Cash Flow From Operations excluding working capital (CFFO) is a non-GAAP
financial measure and its most directly comparable IFRS measure is Cash flow
from operating activities. Cash Flow From Operations excluding working capital
is defined as cash flow from operating activities before changes in working
capital at replacement cost, excluding the mark-to-market effect of Integrated
LNG and Integrated Power contracts, including capital gain from renewable
projects sales and including organic loan repayments from equity affiliates.
This indicator can be a valuable tool for decision makers, analysts and
shareholders alike to help understand changes in cash flow from operating
activities, excluding the impact of working capital changes across periods on
a consistent basis and with the performance of peer companies in a manner
that, when viewed in combination with the Company’s results prepared in
accordance with GAAP, provides a more complete understanding of the factors
and trends affecting the Company’s business and performance. This
performance indicator is used by the Company as a base for its cash flow
allocation and notably to guide on the share of its cash flow to be allocated
to the distribution to shareholders.
Debt adjusted cash flow (DACF) is a non-GAAP financial measure and its most
directly comparable IFRS measure is Cash flow from operating activities. DACF
is defined as Cash Flow From Operations excluding working capital (CFFO)
without financial charges. This indicator can be a valuable tool for decision
makers, analysts and shareholders alike because it corresponds to the funds
theoretically available to the Company for investments, debt repayment and
distribution to shareholders, and therefore facilitates comparison of the
Company’s results of operations with those of other registrants, independent
of their capital structure and working capital requirements.
Free cash flow after Organic Investments is a non-GAAP financial measure and
its most directly comparable IFRS measure is Cash flow from operating
activities. Free cash flow after Organic Investments, refers to Cash Flow From
Operations excluding working capital minus Organic Investments. Organic
Investments refer to Net Investments excluding acquisitions, asset sales and
other transactions with non-controlling interests. This indicator can be a
valuable tool for decision makers, analysts and shareholders alike because it
illustrates operating cash flow generated by the business post allocation of
cash for Organic Investments.
Gearing is a non-GAAP financial measure and its most directly comparable IFRS
measure is the ratio of total financial liabilities to total equity. Gearing
is a Net-debt-to-capital ratio, which is calculated as the ratio of Net debt
excluding leases to (Equity + Net debt excluding leases). This indicator can
be a valuable tool for decision makers, analysts and shareholders alike to
assess the strength of the Company’s balance sheet.
Net cash flow is a non-GAAP financial measure and its most directly comparable
IFRS measure is Cash flow from operating activities. Net cash flow refers to
Cash Flow From Operations excluding working capital minus Net Investments. Net
cash flow can be a valuable tool for decision makers, analysts and
shareholders alike because it illustrates cash flow generated by the
operations of the Company post allocation of cash for Organic Investments and
Acquisitions net of assets sales (acquisitions - assets sales - other
operations with non-controlling interests). This performance indicator
corresponds to the cash flow available to repay debt and allocate cash to
shareholder distribution or share buybacks.
Net investments is a non-GAAP financial measure and its most directly
comparable IFRS measure is Cash flow used in investing activities. Net
Investments refer to Cash flow used in investing activities including other
transactions with non-controlling interests, including change in debt from
renewable projects financing, including expenditures related to carbon
credits, including capex linked to capitalized leasing contracts and excluding
organic loan repayment from equity affiliates. This indicator can be a
valuable tool for decision makers, analysts and shareholders alike to
illustrate the cash directed to growth opportunities, both internal and
external, thereby showing, when combined with the Company’s cash flow
statement prepared under IFRS, how cash is generated and allocated for uses
within the organization. Net Investments are the sum of Organic Investments
and Acquisitions net of assets sales each of which is described in the
Glossary.
Organic investments is a non-GAAP financial measure and its most directly
comparable IFRS measure is Cash flow used in investing activities. Organic
investments refers to Net Investments, excluding acquisitions, asset sales and
other operations with non-controlling interests. Organic Investments can be a
valuable tool for decision makers, analysts and shareholders alike because it
illustrates cash flow used by the Company to grow its asset base, excluding
sources of external growth.
Payout is a non-GAAP financial measure. Payout is defined as the ratio of the
dividends and share buybacks to the Cash Flow From Operations excluding
working capital. This indicator can be a valuable tool for decision makers,
analysts and shareholders as it provides the portion of the Cash Flow From
Operations excluding working capital distributed to the shareholder.
Return on Average Capital Employed (ROACE) is a non-GAAP financial measure.
ROACE is the ratio of Adjusted Net Operating Income to average Capital
Employed at replacement cost between the beginning and the end of the period.
This indicator can be a valuable tool for decision makers, analysts and
shareholders alike to measure the profitability of the Company’s average
Capital Employed in its business operations and is used by the Company to
benchmark its performance internally and externally with its peers.
Disclaimer
The terms “TotalEnergies”, “TotalEnergies company” and “Company”
in this document are used to designate TotalEnergies SE and the consolidated
entities directly or indirectly controlled by TotalEnergies SE. Likewise, the
words “we”, “us” and “our” may also be used to refer to these
entities or their employees. The entities in which TotalEnergies SE directly
or indirectly owns a shareholding are separate and independent legal entities.
This document does not constitute the half-year financial report, which will
be separately published in accordance with article L. 451-1-2-III of the
French Code monétaire et financier and applicable UK law, and available on
the website totalenergies.com
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Ftotalenergies.com&esheet=54099235&newsitemid=20240724325948&lan=en-US&anchor=totalenergies.com&index=3&md5=2172185394e942609b7958f16ee65bf8)
. This press release presents the results for the second quarter of 2024 and
half-year 2024 from the consolidated financial statements of TotalEnergies SE
as of June 30, 2024 (unaudited). The limited review procedures by the
Statutory Auditors are underway. The notes to the consolidated financial
statements (unaudited) are available on the website totalenergies.com
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Ftotalenergies.com&esheet=54099235&newsitemid=20240724325948&lan=en-US&anchor=totalenergies.com&index=4&md5=3c385ddb8ca6b010a7aaf1f10707e2fe)
.
This document may contain forward-looking statements (including
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995), notably with respect to the financial
condition, results of operations, business activities and strategy of
TotalEnergies. This document may also contain statements regarding the
perspectives, objectives, areas of improvement and goals of TotalEnergies,
including with respect to climate change and carbon neutrality (net zero
emissions). An ambition expresses an outcome desired by TotalEnergies, it
being specified that the means to be deployed do not depend solely on
TotalEnergies. These forward-looking statements may generally be identified by
the use of the future or conditional tense or forward-looking words such as
“will”, “should”, “could”, “would”, “may”, “likely”,
“might”, “envisions”, “intends”, “anticipates”,
“believes”, “considers”, “plans”, “expects”, “thinks”,
“targets”, “aims” or similar terminology. Such forward-looking
statements included in this document are based on economic data, estimates and
assumptions prepared in a given economic, competitive and regulatory
environment and considered to be reasonable by TotalEnergies as of the date of
this document. These forward-looking statements are not historical data and
should not be interpreted as assurances that the perspectives, objectives or
goals announced will be achieved. They may prove to be inaccurate in the
future, and may evolve or be modified with a significant difference between
the actual results and those initially estimated, due to the uncertainties
notably related to the economic, financial, competitive and regulatory
environment, or due to the occurrence of risk factors, such as, notably, the
price fluctuations in crude oil and natural gas, the evolution of the demand
and price of petroleum products, the changes in production results and
reserves estimates, the ability to achieve cost reductions and operating
efficiencies without unduly disrupting business operations, changes in laws
and regulations including those related to the environment and climate,
currency fluctuations, technological innovations, meteorological conditions
and events, as well as socio-demographic, economic and political developments,
changes in market conditions, loss of market share and changes in consumer
preferences, or pandemics such as the COVID-19 pandemic. Additionally, certain
financial information is based on estimates particularly in the assessment of
the recoverable value of assets and potential impairments of assets relating
thereto. Readers are cautioned not to consider forward-looking statements as
accurate, but as an expression of the Company’s views only as of the date
this document is published. TotalEnergies SE and its subsidiaries have no
obligation, make no commitment and expressly disclaim any responsibility to
investors or any stakeholder to update or revise, particularly as a result of
new information or future events, any forward-looking information or
statement, objectives or trends contained in this document. In addition, the
Company has not verified, and is under no obligation to verify any third-party
data contained in this document or used in the estimates and assumptions or,
more generally, forward-looking statements published in this document. The
information on risk factors that could have a significant adverse effect on
TotalEnergies’ business, financial condition, including its operating income
and cash flow, reputation, outlook or the value of financial instruments
issued by TotalEnergies is provided in the most recent version of the
Universal Registration Document which is filed by TotalEnergies SE with the
French Autorité des Marchés Financiers and the annual report on Form 20-F
filed with the United States Securities and Exchange Commission (“SEC”).
Additionally, the developments of environmental and climate change-related
issues in this document are based on various frameworks and the interests of
various stakeholders which are subject to evolve independently of our will.
Moreover, our disclosures on such issues, including climate-related
disclosures, may include information that is not necessarily "material" under
US securities laws for SEC reporting purposes or under applicable securities
law.
Financial information by business segment is reported in accordance with the
internal reporting system and shows internal segment information that is used
to manage and measure the performance of TotalEnergies. In addition to IFRS
measures, certain alternative performance indicators are presented, such as
performance indicators excluding the adjustment items described below
(adjusted operating income, adjusted net operating income, adjusted net
income), return on equity (ROE), return on average capital employed (ROACE),
gearing ratio, operating cash flow before working capital changes, the
shareholder rate of return. These indicators are meant to facilitate the
analysis of the financial performance of TotalEnergies and the comparison of
income between periods. They allow investors to track the measures used
internally to manage and measure the performance of TotalEnergies.
These adjustment items include:
(i) Special items
Due to their unusual nature or particular significance, certain transactions
qualifying as "special items" are excluded from the business segment figures.
In general, special items relate to transactions that are significant,
infrequent, or unusual. However, in certain instances, transactions such as
restructuring costs or assets disposals, which are not considered to be
representative of the normal course of business, may qualify as special items
although they may have occurred in prior years or are likely to occur in
following years.
(ii) The inventory valuation effect
In accordance with IAS 2, TotalEnergies values inventories of petroleum
products in its financial statements according to the First-In, First-Out
(FIFO) method and other inventories using the weighted-average cost method.
Under the FIFO method, the cost of inventory is based on the historic cost of
acquisition or manufacture rather than the current replacement cost. In
volatile energy markets, this can have a significant distorting effect on the
reported income. Accordingly, the adjusted results of the Refining &
Chemicals and Marketing & Services segments are presented according to the
replacement cost method. This method is used to assess the segments’
performance and facilitate the comparability of the segments’ performance
with those of its main competitors.
In the replacement cost method, which approximates the Last-In, First-Out
(LIFO) method, the variation of inventory values in the statement of income
is, depending on the nature of the inventory, determined using either the
month-end prices differential between one period and another or the average
prices of the period rather than the historical value. The inventory valuation
effect is the difference between the results under the FIFO and the
replacement cost methods.
(iii) Effect of changes in fair value
The effect of changes in fair value presented as an adjustment item reflects,
for trading inventories and storage contracts, differences between internal
measures of performance used by TotalEnergies’ Executive Committee and the
accounting for these transactions under IFRS.
IFRS requires that trading inventories be recorded at their fair value using
period-end spot prices. In order to best reflect the management of economic
exposure through derivative transactions, internal indicators used to measure
performance include valuations of trading inventories based on forward prices.
TotalEnergies, in its trading activities, enters into storage contracts, whose
future effects are recorded at fair value in TotalEnergies’ internal
economic performance. IFRS precludes recognition of this fair value effect.
Furthermore, TotalEnergies enters into derivative instruments to risk manage
certain operational contracts or assets. Under IFRS, these derivatives are
recorded at fair value while the underlying operational transactions are
recorded as they occur. Internal indicators defer the fair value on
derivatives to match with the transaction occurrence.
The adjusted results (adjusted operating income, adjusted net operating
income, adjusted net income) are defined as replacement cost results, adjusted
for special items, excluding the effect of changes in fair value.
Euro amounts presented for the fully adjusted-diluted earnings per share
represent dollar amounts converted at the average euro-dollar (€-$) exchange
rate for the applicable period and are not the result of financial statements
prepared in euros.
Cautionary Note to U.S. Investors – The SEC permits oil and gas companies,
in their filings with the SEC, to separately disclose proved, probable and
possible reserves that a company has determined in accordance with SEC rules.
We may use certain terms in this press release, such as “potential
reserves” or “resources”, that the SEC’s guidelines strictly prohibit
us from including in filings with the SEC. U.S. investors are urged to
consider closely the disclosure in the Form 20-F of TotalEnergies SE, File N°
1-10888, available from us at 2, place Jean Millier – Arche Nord
Coupole/Regnault - 92078 Paris-La Défense Cedex, France, or at the Company
website totalenergies.com
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Ftotalenergies.com&esheet=54099235&newsitemid=20240724325948&lan=en-US&anchor=totalenergies.com&index=5&md5=c257c807441fd7087b00f7daf40d824a)
. You can also obtain this form from the SEC by calling 1-800-SEC-0330 or on
the SEC’s website sec.gov
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fsec.gov&esheet=54099235&newsitemid=20240724325948&lan=en-US&anchor=sec.gov&index=6&md5=4ee6098800b8f896bd3b58831c3ae2d7)
.
((1)) Refer to Glossary pages 22 & 23 for the definitions and further
information on alternative performance measures (Non-GAAP measures) and to
page 19 and following for reconciliation tables.
((2)) Some of the transactions mentioned in the highlights remain subject to the
agreement of the authorities or to the fulfilment of conditions precedent
under the terms of the agreements.
((3)) Effective tax rate = (tax on adjusted net operating income) / (adjusted net
operating income – income from equity affiliates – dividends received from
investments – impairment of goodwill + tax on adjusted net operating
income).
((4)) In accordance with IFRS rules, adjusted fully-diluted earnings per share is
calculated from the adjusted net income less the interest on the perpetual
subordinated bonds.
((5)) Average €-$ exchange rate: 1.0767 in the 2(nd) quarter 2024, 1.0858 in the
1(st) quarter 2024, 1.0887 in the 2(nd) quarter 2023, 1.0813 in the 1(st) half
2024 and 1.0807 in the 1(st) half 2023.
((6)) Does not include oil, gas and LNG trading activities, respectively.
((7)) Sales in $ / Sales in volume for consolidated affiliates.
((8)) Sales in $ / Sales in volume for consolidated affiliates.
((9)) Sales in $ / Sales in volume for consolidated and equity affiliates.
((10)) This market indicator for European refining, calculated based on public market
prices ($/t), uses a basket of crudes, petroleum product yields and variable
costs representative of the European refining system of TotalEnergies.
((11)) The six greenhouse gases in the Kyoto protocol, namely CO2, CH4, N2O, HFCs,
PFCs and SF6, with their respective GWP (Global Warming Potential) as
described in the 2007 IPCC report. HFCs, PFCs and SF6 are virtually absent
from the Company’s emissions or are considered as non-material and are
therefore not counted.
((12)) Scope 1+2 GHG emissions of operated facilities are defined as the sum of
direct emissions of greenhouse gases from sites or activities that are
included in the scope of reporting (as defined in the Company’s 2023
Universal Registration Document) and indirect emissions attributable to
brought-in energy (electricity, heat, steam), excluding purchased industrial
gases (H2).
((13)) TotalEnergies reports Scope 3 GHG emissions, category 11, which correspond to
indirect GHG emissions related to the end use of energy products sold to the
Company’s customers, i.e., from their combustion, i.e., combustion of the
products to obtain energy. The Company follows the oil & gas industry
reporting guidelines published by IPIECA, which comply with the GHG Protocol
methodologies. In order to avoid double counting, this methodology accounts
for the largest volume in the oil, biofuels and gas value chains, i.e., the
higher of the two production volumes or sales. The highest point for each
value chain for 2024 will be evaluated considering realizations over the full
year, TotalEnergies gradually providing quarterly estimates.
((14)) Company production = E&P production + Integrated LNG production.
((15)) Effective tax rate = (tax on adjusted net operating income) / (adjusted net
operating income – income from equity affiliates – dividends received from
investments – impairment of goodwill + tax on adjusted net operating
income).
((16)) Sensitivities are revised once per year upon publication of the previous
year’s fourth quarter results. Sensitivities are estimates based on
assumptions about TotalEnergies’ portfolio in 2024. Actual results could
vary significantly from estimates based on the application of these
sensitivities. The impact of the $-€ sensitivity on adjusted net operating
income is essentially attributable to Refining & Chemicals.
((17)) In a 80 $/b Brent environment.
((18)) End-of-period data.
((19)) Includes 20% of the gross capacities of Adani Green Energy Limited, 50% of
Clearway Energy Group and 49% of Casa dos Ventos.
((20)) End-of-period data.
CONSOLIDATED STATEMENT OF INCOME
TotalEnergies
(unaudited)
2(nd) quarter 1(st) quarter 2(nd) quarter
(M$)((a)) 2024 2024 2023
Sales 53,743 56,278 56,271
Excise taxes (4,560) (4,395) (4,737)
Revenues from sales 49,183 51,883 51,534
Purchases, net of inventory variation (32,117) (33,780) (33,864)
Other operating expenses (7,729) (7,643) (7,906)
Exploration costs (97) (88) (62)
Depreciation, depletion and impairment of tangible assets and mineral (2,976) (2,942) (3,106)
interests
Other income 3 1,758 116
Other expense (251) (315) (366)
Financial interest on debt (725) (708) (724)
Financial income and expense from cash & cash equivalents 408 472 510
Cost of net debt (317) (236) (214)
Other financial income 459 306 413
Other financial expense (213) (215) (173)
Net income (loss) from equity affiliates 627 18 267
Income taxes (2,725) (2,942) (2,487)
Consolidated net income 3,847 5,804 4,152
TotalEnergies share 3,787 5,721 4,088
Non-controlling interests 60 83 64
Earnings per share ($) 1.61 2.42 1.65
Fully-diluted earnings per share ($) 1.60 2.40 1.64
(a) Except for per share amounts.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TotalEnergies
(unaudited)
2(nd) quarter 1(st) quarter 2(nd) quarter
(M$) 2024 2024 2023
Consolidated net income 3,847 5,804 4,152
Other comprehensive income
Actuarial gains and losses 22 (2) 135
Change in fair value of investments in equity instruments 103 40 (1)
Tax effect (11) (8) (43)
Currency translation adjustment generated by the parent company (683) (1,506) (57)
Items not potentially reclassifiable to profit and loss (569) (1,476) 34
Currency translation adjustment 523 1,099 (49)
Cash flow hedge 593 807 689
Variation of foreign currency basis spread - (15) 11
share of other comprehensive income of equity affiliates, net amount (38) (76) 3
Other (2) 2 (4)
Tax effect (153) (219) (136)
Items potentially reclassifiable to profit and loss 923 1,598 514
Total other comprehensive income (net amount) 354 122 548
Comprehensive income 4,201 5,926 4,700
TotalEnergies share 4,134 5,870 4,676
Non-controlling interests 67 56 24
CONSOLIDATED STATEMENT OF INCOME
TotalEnergies
(unaudited)
1(st) half 1(st) half
(M$)((a)) 2024 2023
Sales 110,021 118,874
Excise taxes (8,955) (9,107)
Revenues from sales 101,066 109,767
Purchases, net of inventory variation (65,897) (72,215)
Other operating expenses (15,372) (15,691)
Exploration costs (185) (154)
Depreciation, depletion and impairment of tangible assets and mineral (5,918) (6,168)
interests
Other income 1,761 457
Other expense (566) (666)
Financial interest on debt (1,433) (1,434)
Financial income and expense from cash & cash equivalents 880 903
Cost of net debt (553) (531)
Other financial income 765 671
Other financial expense (428) (356)
Net income (loss) from equity affiliates 645 1,227
Income taxes (5,667) (6,558)
Consolidated net income 9,651 9,783
TotalEnergies share 9,508 9,645
Non-controlling interests 143 138
Earnings per share ($) 4.04 3.88
Fully-diluted earnings per share ($) 4.02 3.86
(a) Except for per share amounts.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TotalEnergies
(unaudited)
1(st) half 1(st) half
(M$) 2024 2023
Consolidated net income 9,651 9,783
Other comprehensive income
Actuarial gains and losses 20 138
Change in fair value of investments in equity instruments 143 3
Tax effect (19) (51)
Currency translation adjustment generated by the parent company (2,189) 1,409
Items not potentially reclassifiable to profit and loss (2,045) 1,499
Currency translation adjustment 1,622 (1,299)
Cash flow hedge 1,400 1,891
Variation of foreign currency basis spread (15) 8
share of other comprehensive income of equity affiliates, net amount (114) (95)
Other - (1)
Tax effect (372) (472)
Items potentially reclassifiable to profit and loss 2,521 32
Total other comprehensive income (net amount) 476 1,531
Comprehensive income 10,127 11,314
TotalEnergies share 10,004 11,226
Non-controlling interests 123 88
CONSOLIDATED BALANCE SHEET
TotalEnergies
June 30, 2024 March 31, 2024 December 31, 2023 June 30, 2023
(M$) (unaudited) (unaudited) (unaudited)
ASSETS
Non-current assets
Intangible assets, net 33,477 33,193 33,083 31,717
Property, plant and equipment, net 109,403 109,462 108,916 104,174
Equity affiliates : investments and loans 32,800 31,256 30,457 30,425
Other investments 1,740 1,895 1,543 1,190
Non-current financial assets 2,469 2,308 2,395 2,494
Deferred income taxes 3,568 3,165 3,418 3,649
Other non-current assets 4,235 4,328 4,313 2,573
Total non-current assets 187,692 185,607 184,125 176,222
Current assets
Inventories, net 20,189 20,229 19,317 18,785
Accounts receivable, net 20,647 24,198 23,442 22,163
Other current assets 20,014 20,615 20,821 23,111
Current financial assets 6,823 6,319 6,585 6,725
Cash and cash equivalents 23,211 25,640 27,263 25,572
Assets classified as held for sale 912 525 2,101 8,441
Total current assets 91,796 97,526 99,529 104,797
Total assets 279,488 283,133 283,654 281,019
LIABILITIES & SHAREHOLDERS' EQUITY
Shareholders' equity
Common shares 7,577 7,548 7,616 7,850
Paid-in surplus and retained earnings 130,688 129,937 126,857 123,511
Currency translation adjustment (14,415) (14,167) (13,701) (12,859)
Treasury shares (6,471) (4,909) (4,019) (4,820)
Total shareholders' equity - TotalEnergies share 117,379 118,409 116,753 113,682
Non-controlling interests 2,648 2,734 2,700 2,770
Total shareholders' equity 120,027 121,143 119,453 116,452
Non-current liabilities
Deferred income taxes 12,461 11,878 11,688 11,237
Employee benefits 1,819 1,941 1,993 1,872
Provisions and other non-current liabilities 20,295 20,961 21,257 21,295
Non-current financial debt 42,526 38,053 40,478 40,427
Total non-current liabilities 77,101 72,833 75,416 74,831
Current liabilities
Accounts payable 36,449 37,647 41,335 32,853
Other creditors and accrued liabilities 33,442 32,949 36,727 38,609
Current borrowings 11,271 17,973 9,590 15,542
Other current financial liabilities 461 481 446 443
Liabilities directly associated with the assets classified as held for sale 737 107 687 2,289
Total current liabilities 82,360 89,157 88,785 89,736
Total liabilities & shareholders' equity 279,488 283,133 283,654 281,019
CONSOLIDATED STATEMENT OF CASH FLOW
TotalEnergies
(unaudited)
2(nd) quarter 1(st) quarter 2(nd) quarter
(M$) 2024 2024 2023
CASH FLOW FROM OPERATING ACTIVITIES
Consolidated net income 3,847 5,804 4,152
Depreciation, depletion, amortization and impairment 3,080 3,036 3,195
Non-current liabilities, valuation allowances and deferred taxes (53) 292 81
(Gains) losses on disposals of assets 182 (1,610) (70)
Undistributed affiliates' equity earnings (250) 288 383
(Increase) decrease in working capital 2,013 (5,686) 2,125
Other changes, net 188 45 34
Cash flow from operating activities 9,007 2,169 9,900
CASH FLOW USED IN INVESTING ACTIVITIES
Intangible assets and property, plant and equipment additions (3,699) (3,420) (3,870)
Acquisitions of subsidiaries, net of cash acquired (251) (759) (19)
Investments in equity affiliates and other securities (481) (488) (522)
Increase in non-current loans (621) (538) (366)
Total expenditures (5,052) (5,205) (4,777)
Proceeds from disposals of intangible assets and property, plant and equipment 44 337 31
Proceeds from disposals of subsidiaries, net of cash sold 213 1,218 38
Proceeds from disposals of non-current investments 56 34 133
Repayment of non-current loans 181 149 102
Total divestments 494 1,738 304
Cash flow used in investing activities (4,558) (3,467) (4,473)
CASH FLOW USED IN FINANCING ACTIVITIES
Issuance (repayment) of shares:
- Parent company shareholders 521 - 383
- Treasury shares (2,007) (2,006) (2,002)
Dividends paid:
- Parent company shareholders (1,853) (1,903) (1,842)
- Non-controlling interests (127) (6) (105)
Net issuance (repayment) of perpetual subordinated notes (1,622) - (1,081)
Payments on perpetual subordinated notes (50) (159) (80)
Other transactions with non-controlling interests (19) (17) (13)
Net issuance (repayment) of non-current debt 4,319 42 (14)
Increase (decrease) in current borrowings (5,453) 3,536 (4,111)
Increase (decrease) in current financial assets and liabilities (530) 271 990
Cash flow from (used in) financing activities (6,821) (242) (7,875)
Net increase (decrease) in cash and cash equivalents (2,372) (1,540) (2,448)
Effect of exchange rates (57) (83) 35
Cash and cash equivalents at the beginning of the period 25,640 27,263 27,985
Cash and cash equivalents at the end of the period 23,211 25,640 25,572
CONSOLIDATED STATEMENT OF CASH FLOW
TotalEnergies
(unaudited)
1(st) half 1(st) half
(M$) 2024 2023
CASH FLOW FROM OPERATING ACTIVITIES
Consolidated net income 9,651 9,783
Depreciation, depletion, amortization and impairment 6,116 6,382
Non-current liabilities, valuation allowances and deferred taxes 239 395
(Gains) losses on disposals of assets (1,428) (322)
Undistributed affiliates' equity earnings 38 34
(Increase) decrease in working capital (3,673) (1,294)
Other changes, net 233 55
Cash flow from operating activities 11,176 15,033
CASH FLOW USED IN INVESTING ACTIVITIES
Intangible assets and property, plant and equipment additions (7,119) (8,838)
Acquisitions of subsidiaries, net of cash acquired (1,010) (155)
Investments in equity affiliates and other securities (969) (1,929)
Increase in non-current loans (1,159) (755)
Total expenditures (10,257) (11,677)
Proceeds from disposals of intangible assets and property, plant and equipment 381 99
Proceeds from disposals of subsidiaries, net of cash sold 1,431 221
Proceeds from disposals of non-current investments 90 182
Repayment of non-current loans 330 340
Total divestments 2,232 842
Cash flow used in investing activities (8,025) (10,835)
CASH FLOW USED IN FINANCING ACTIVITIES
Issuance (repayment) of shares:
- Parent company shareholders 521 383
- Treasury shares (4,013) (4,105)
Dividends paid:
- Parent company shareholders (3,756) (3,686)
- Non-controlling interests (133) (126)
Net issuance (repayment) of perpetual subordinated notes (1,622) (1,081)
Payments on perpetual subordinated notes (209) (238)
Other transactions with non-controlling interests (36) (99)
Net issuance (repayment) of non-current debt 4,361 104
Increase (decrease) in current borrowings (1,917) (5,385)
Increase (decrease) in current financial assets and liabilities (259) 2,384
Cash flow from (used in) financing activities (7,063) (11,849)
Net increase (decrease) in cash and cash equivalents (3,912) (7,651)
Effect of exchange rates (140) 197
Cash and cash equivalents at the beginning of the period 27,263 33,026
Cash and cash equivalents at the end of the period 23,211 25,572
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
TotalEnergies
(unaudited)
Common shares issued Paid-in surplus and retained earnings Currency translation adjustment Treasury shares Shareholders' equity - TotalEnergies Non-controlling interests Total shareholders' equity
Share
(M$) Number Amount Number Amount
As of January 1, 2023 2,619,131,285 8,163 123,951 (12,836) (137,187,667) (7,554) 111,724 2,846 114,570
Net income of the first half 2023 - - 9,645 - - - 9,645 138 9,783
Other comprehensive income - - 1,576 5 - - 1,581 (50) 1,531
Comprehensive Income - - 11,221 5 - - 11,226 88 11,314
Dividend - - (3,868) - - - (3,868) (126) (3,994)
Issuance of common shares 8,002,155 22 361 - - - 383 - 383
Purchase of treasury shares - - - - (66,647,852) (4,705) (4,705) - (4,705)
Sale of treasury shares((a)) - - (396) - 6,461,256 396 - - -
Share-based payments - - 172 - - - 172 - 172
Share cancellation (128,869,261) (335) (6,708) - 128,869,261 7,043 - - -
Net issuance (repayment) of perpetual subordinated notes - - (1,107) - - - (1,107) - (1,107)
Payments on perpetual subordinated notes - - (151) - - - (151) - (151)
Other operations with - - 39 (28) - - 11 (38) (27)
non-controlling interests
Other items - - (3) - - - (3) - (3)
As of June 30, 2023 2,498,264,179 7,850 123,511 (12,859) (68,505,002) (4,820) 113,682 2,770 116,452
Net income of the second half 2023 - - 11,739 - - - 11,739 (12) 11,727
Other comprehensive income - - 411 (842) - - (431) 7 (424)
Comprehensive Income - - 12,150 (842) - - 11,308 (5) 11,303
Dividend - - (3,743) - - - (3,743) (185) (3,928)
Issuance of common shares - - - - - - - - -
Purchase of treasury shares - - - - (78,052,725) (4,462) (4,462) - (4,462)
Sale of treasury shares((a)) - - - - 2,170 - - - -
Share-based payments - - 119 - - - 119 - 119
Share cancellation (86,012,344) (234) (5,029) - 86,012,344 5,263 - - -
Net issuance (repayment) of perpetual subordinated notes - - - - - - - - -
Payments on perpetual subordinated notes - - (143) - - - (143) - (143)
Other operations with - - (9) - - - (9) 123 114
non-controlling interests
Other items - - 1 - - - 1 (3) (2)
As of December 31, 2023 2,412,251,835 7,616 126,857 (13,701) (60,543,213) (4,019) 116,753 2,700 119,453
Net income of the first half 2024 - - 9,508 - - - 9,508 143 9,651
Other comprehensive income - - 1,210 (714) - - 496 (20) 476
Comprehensive Income - - 10,718 (714) - - 10,004 123 10,127
Dividend - - (3,929) - - - (3,929) (133) (4,062)
Issuance of common shares 10,833,187 29 492 - - - 521 - 521
Purchase of treasury shares - - - - (58,719,028) (4,513) (4,513) - (4,513)
Sale of treasury shares((a)) - - (397) - 6,065,491 397 - - -
Share-based payments - - 356 - - - 356 - 356
Share cancellation (25,405,361) (68) (1,596) - 25,405,361 1,664 - - -
Net issuance (repayment) of perpetual subordinated notes - - (1,679) - - - (1,679) - (1,679)
Payments on perpetual subordinated notes - - (135) - - - (135) - (135)
Other operations with - - - - - - - (36) (36)
non-controlling interests
Other items - - 1 - - - 1 (6) (5)
As of June 30, 2024 2,397,679,661 7,577 130,688 (14,415) (87,791,389) (6,471) 117,379 2,648 120,027
((a))Treasury shares related to the performance share grants.
INFORMATION BY BUSINESS SEGMENT
TotalEnergies
(unaudited)
2(nd) quarter 2024 Exploration Integrated LNG Integrated Power Refining Marketing Corporate Intercompany Total
&
&
&
Production
Chemicals
Services
(M$)
External sales 1,416 1,986 4,464 24,516 21,358 3 - 53,743
Intersegment sales 9,796 2,111 369 8,203 164 77 (20,720) -
Excise taxes - - - (208) (4,352) - - (4,560)
Revenues from sales 11,212 4,097 4,833 32,511 17,170 80 (20,720) 49,183
Operating expenses (4,669) (2,922) (4,506) (31,647) (16,601) (318) 20,720 (39,943)
Depreciation, depletion and impairment of tangible assets and mineral (1,907) (310) (105) (416) (208) (30) - (2,976)
interests
Net income (loss) from equity affiliates and other items 141 526 26 (13) (84) 29 - 625
Tax on net operating income (2,163) (251) (79) (60) (101) (23) - (2,677)
Adjustments( (a)) (53) (12) (333) (264) (203) (9) - (874)
Adjusted net operating income 2,667 1,152 502 639 379 (253) - 5,086
Adjustments( (a)) (874)
Net cost of net debt (365)
Non-controlling interests (60)
Net income - TotalEnergies share 3,787
((a) )Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
The management of balance sheet positions (including margin calls) related to
centralized markets access for LNG, gas and power activities has been fully
included in the Integrated LNG segment.
Effects of changes in the fair value of gas and LNG positions are allocated to
the operating income of Integrated LNG segment.
Effects of changes in the fair value of power positions are allocated to the
operating income of Integrated Power segment.
2(nd) quarter 2024 Exploration Integrated LNG Integrated Power Refining Marketing Corporate Intercompany Total
&
&
&
Production
Chemicals
Services
(M$)
Total expenditures 2,697 844 769 443 259 40 - 5,052
Total divestments 149 29 261 127 (78) 6 - 494
Cash flow from operating activities 4,535 431 1,647 1,541 1,650 (797) - 9,007
INFORMATION BY BUSINESS SEGMENT
TotalEnergies
(unaudited)
1(st) quarter 2024 Exploration Integrated LNG Integrated Power Refining Marketing Corporate Intercompany Total
&
&
&
Production
Chemicals
Services
(M$)
External sales 1,318 2,659 7,082 24,533 20,671 15 - 56,278
Intersegment sales 9,735 3,495 790 8,143 269 63 (22,495) -
Excise taxes - - - (170) (4,225) - - (4,395)
Revenues from sales 11,053 6,154 7,872 32,506 16,715 78 (22,495) 51,883
Operating expenses (4,444) (4,784) (7,565) (30,888) (16,096) (229) 22,495 (41,511)
Depreciation, depletion and impairment of tangible assets and mineral (1,917) (321) (97) (376) (206) (25) - (2,942)
interests
Net income (loss) from equity affiliates and other items 97 495 (615) 68 1,480 27 - 1,552
Tax on net operating income (2,261) (284) (40) (255) (108) 55 - (2,893)
Adjustments( (a)) (22) 38 (1,056) 93 1,530 (4) - 579
Adjusted net operating income 2,550 1,222 611 962 255 (90) - 5,510
Adjustments( (a)) 579
Net cost of net debt (285)
Non-controlling interests (83)
Net income - TotalEnergies share 5,721
((a) )Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
The management of balance sheet positions (including margin calls) related to
centralized markets access for LNG, gas and power activities has been fully
included in the Integrated LNG segment.
Effects of changes in the fair value of gas and LNG positions are allocated to
the operating income of Integrated LNG segment.
Effects of changes in the fair value of power positions are allocated to the
operating income of Integrated Power segment.
1(st) quarter 2024 Exploration Integrated LNG Integrated Power Refining Marketing Corporate Intercompany Total
&
&
&
Production
Chemicals
Services
(M$)
Total expenditures 2,294 565 1,739 435 144 28 - 5,205
Total divestments 306 50 62 38 1,281 1 - 1,738
Cash flow from operating activities 3,590 1,710 (249) (2,129) (108) (645) - 2,169
INFORMATION BY BUSINESS SEGMENT
TotalEnergies
(unaudited)
2(nd) quarter 2023 Exploration Integrated LNG Integrated Power Refining Marketing Corporate Intercompany Total
&
&
&
Production
Chemicals
Services
(M$)
External sales 1,434 2,020 6,249 24,849 21,712 7 - 56,271
Intersegment sales 10,108 2,778 670 8,630 201 64 (22,451) -
Excise taxes - - - (231) (4,506) - - (4,737)
Revenues from sales 11,542 4,798 6,919 33,248 17,407 71 (22,451) 51,534
Operating expenses (5,162) (3,797) (6,334) (32,042) (16,672) (276) 22,451 (41,832)
Depreciation, depletion and impairment of tangible assets and mineral (2,117) (277) (51) (394) (241) (26) - (3,106)
interests
Net income (loss) from equity affiliates and other items (15) 472 (250) 3 64 (17) - 257
Tax on net operating income (1,889) (137) (41) (187) (162) (40) - (2,456)
Adjustments( (a)) 10 (271) (207) (376) (53) (40) - (937)
Adjusted net operating income 2,349 1,330 450 1,004 449 (248) - 5,334
Adjustments( (a)) (937)
Net cost of net debt (245)
Non-controlling interests (64)
Net income - TotalEnergies share 4,088
((a) )Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
The management of balance sheet positions (including margin calls) related to
centralized markets access for LNG, gas and power activities has been fully
included in the Integrated LNG segment.
Effects of changes in the fair value of gas and LNG positions are allocated to
the operating income of Integrated LNG segment.
Effects of changes in the fair value of power positions are allocated to the
operating income of Integrated Power segment.
2(nd) quarter 2023 Exploration Integrated LNG Integrated Power Refining Marketing Corporate Intercompany Total
&
&
&
Production
Chemicals
Services
(M$)
Total expenditures 2,569 626 807 489 256 30 - 4,777
Total divestments 26 45 149 52 28 4 - 304
Cash flow from operating activities 4,047 1,332 2,284 1,923 665 (351) - 9,900
INFORMATION BY BUSINESS SEGMENT
TotalEnergies
(unaudited)
1(st) half 2024 Exploration Integrated LNG Integrated Power Refining Marketing Corporate Intercompany Total
&
&
&
Production
Chemicals
Services
(M$)
External sales 2,734 4,645 11,546 49,049 42,029 18 - 110,021
Intersegment sales 19,531 5,606 1,159 16,346 433 140 (43,215) -
Excise taxes - - - (378) (8,577) - - (8,955)
Revenues from sales 22,265 10,251 12,705 65,017 33,885 158 (43,215) 101,066
Operating expenses (9,113) (7,706) (12,071) (62,535) (32,697) (547) 43,215 (81,454)
Depreciation, depletion and impairment of tangible assets and mineral (3,824) (631) (202) (792) (414) (55) - (5,918)
interests
Net income (loss) from equity affiliates and other items 238 1,021 (589) 55 1,396 56 - 2,177
Tax on net operating income (4,424) (535) (119) (315) (209) 32 - (5,570)
Adjustments( (a)) (75) 26 (1,389) (171) 1,327 (13) - (295)
Adjusted net operating income 5,217 2,374 1,113 1,601 634 (343) - 10,596
Adjustments( (a)) (295)
Net cost of net debt (650)
Non-controlling interests (143)
Net income - TotalEnergies share 9,508
((a) )Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
The management of balance sheet positions (including margin calls) related to
centralized markets access for LNG, gas and power activities has been fully
included in the Integrated LNG segment.
Effects of changes in the fair value of gas and LNG positions are allocated to
the operating income of Integrated LNG segment.
Effects of changes in the fair value of power positions are allocated to the
operating income of Integrated Power segment.
1(st) half 2024 Exploration Integrated LNG Integrated Power Refining Marketing Corporate Intercompany Total
&
&
&
Production
Chemicals
Services
(M$)
Total expenditures 4,991 1,409 2,508 878 403 68 - 10,257
Total divestments 455 79 323 165 1,203 7 - 2,232
Cash flow from operating activities 8,125 2,141 1,398 (588) 1,542 (1,442) - 11,176
INFORMATION BY BUSINESS SEGMENT
TotalEnergies
(unaudited)
1(st) half 2023 Exploration Integrated LNG Integrated Power Refining Marketing Corporate Intercompany Total
&
&
&
Production
Chemicals
Services
(M$)
External sales 3,388 6,892 14,804 49,704 44,071 15 - 118,874
Intersegment sales 20,836 8,777 2,355 17,691 321 121 (50,101) -
Excise taxes - - - (415) (8,692) - - (9,107)
Revenues from sales 24,224 15,669 17,159 66,980 35,700 136 (50,101) 109,767
Operating expenses (9,924) (13,242) (16,165) (63,934) (34,459) (437) 50,101 (88,060)
Depreciation, depletion and impairment of tangible assets and mineral (4,183) (565) (98) (808) (465) (49) - (6,168)
interests
Net income (loss) from equity affiliates and other items 53 1,276 (320) 55 307 (38) - 1,333
Tax on net operating income (5,287) (342) (152) (512) (281) 23 - (6,551)
Adjustments( (a)) (119) (606) (396) (841) 73 (40) - (1,929)
Adjusted operating income 5,002 3,402 820 2,622 729 (325) - 12,250
Adjustments( (a)) (1,929)
Net cost of net debt (538)
Non-controlling interests (138)
Net income - TotalEnergies share 9,645
((a) )Adjustments include special items, inventory valuation effect and the
effect of changes in fair value.
The management of balance sheet positions (including margin calls) related to
centralized markets access for LNG, gas and power activities has been fully
included in the Integrated LNG segment.
Effects of changes in the fair value of gas and LNG positions are allocated to
the operating income of Integrated LNG segment.
Effects of changes in the fair value of power positions are allocated to the
operating income of Integrated Power segment.
1(st) half 2023 Exploration Integrated LNG Integrated Power Refining Marketing Corporate Intercompany Total
&
&
&
Production
Chemicals
Services
(M$)
Total expenditures 6,621 1,821 2,041 714 415 65 - 11,677
Total divestments 57 94 298 60 329 4 - 842
Cash flow from operating activities 8,583 4,868 999 1,072 (8) (481) - 15,033
Alternative Performance Measures (Non-GAAP)
TotalEnergies
(unaudited)
1. Reconciliation of cash flow used in investing activities to Net investments
1.1 Exploration & Production
2(nd) quarter 1(st) quarter 2(nd) quarter 2(nd) quarter 2024 vs (in millions of dollars) 6 months 6 months 6 months 2024 vs
2024 2024 2023 2(nd) quarter 2023 2024 2023 6 months 2023
2,548 1,988 2,543 ns Cash flow used in investing activities ( a ) 4,536 6,564 -31%
- - - ns Other transactions with non-controlling interests ( b ) - - ns
- - - ns Organic loan repayment from equity affiliates ( c ) - - ns
- - - ns Change in debt from renewable projects financing ( d ) * - - ns
90 90 56 61% Capex linked to capitalized leasing contracts ( e ) 180 106 70%
4 (1) 1 x4 Expenditures related to carbon credits ( f ) 3 2 50%
2,642 2,077 2,600 2% Net investments ( a + b + c + d + e + f = g - i + h ) 4,719 6,672 -29%
57 36 176 -68% of which net acquisitions of assets sales ( g - i ) 93 2,114 -96%
160 327 179 -11% Acquisitions ( g ) 487 2,125 -77%
103 291 3 x34.3 Assets sales ( i ) 394 11 x35.8
- - - ns Change in debt from renewable projects (partner share) - - ns
2,585 2,041 2,424 7% of which organic investments ( h ) 4,626 4,558 1%
88 136 325 -73% Capitalized exploration 225 529 -58%
67 42 17 x3.9 Increase in non-current loans 109 61 79%
(46) (15) (23) ns Repayment of non-current loans, excluding organic loan repayment from equity (61) (46) ns
affiliates
- - - ns Change in debt from renewable projects (TotalEnergies share) - - ns
*Change in debt from renewable projects (TotalEnergies share and partner
share)
1.2 Integrated LNG
2(nd) quarter 1(st) quarter 2(nd) quarter 2(nd) quarter 2024 vs (in millions of dollars) 6 months 6 months 6 months 2024 vs
2024 2024 2023 2(nd) quarter 2023 2024 2023 6 months 2023
815 515 581 40% Cash flow used in investing activities ( a ) 1,330 1,727 -23%
ns Other transactions with non-controlling interests ( b ) ns
1 ns Organic loan repayment from equity affiliates ( c ) 1 2 -50%
ns Change in debt from renewable projects financing ( d ) * ns
7 12 6 17% Capex linked to capitalized leasing contracts ( e ) 19 14 36%
ns Expenditures related to carbon credits ( f ) ns
822 528 587 40% Net investments ( a + b + c + d + e + f = g - i + h ) 1,350 1,743 -23%
198 (12) 205 -3% of which net acquisitions of assets sales ( g - i ) 186 964 -81%
199 224 -11% Acquisitions ( g ) 199 993 -80%
1 12 19 -95% Assets sales ( i ) 13 29 -55%
ns Change in debt from renewable projects (partner share) ns
624 540 382 63% of which organic investments ( h ) 1,164 779 49%
13 9 3 x4.3 Capitalized exploration 22 4 x5.5
153 173 95 61% Increase in non-current loans 326 238 37%
(42) (37) (26) ns Repayment of non-current loans, excluding organic loan repayment from equity (79) (64) ns
affiliates
ns Change in debt from renewable projects (TotalEnergies share) ns
*Change in debt from renewable projects (TotalEnergies share and partner
share)
Alternative Performance Measures (Non-GAAP)
TotalEnergies
(unaudited)
1.3 Integrated Power
2(nd) quarter 1(st) quarter 2(nd) quarter 2(nd) quarter 2024 vs (in millions of dollars) 6 months 6 months 6 months 2024 vs
2024 2024 2023 2(nd) quarter 2023 2024 2023 6 months 2023
508 1,677 658 -23% Cash flow used in investing activities ( a ) 2,185 1,743 25%
- - - ns Other transactions with non-controlling interests ( b ) - - ns
- - 16 ns Organic loan repayment from equity affiliates ( c ) - 22 ns
- - 35 ns Change in debt from renewable projects financing ( d ) * - 38 ns
- 1 2 ns Capex linked to capitalized leasing contracts ( e ) 1 4 -75%
- - - ns Expenditures related to carbon credits ( f ) - - ns
508 1,678 711 -29% Net investments ( a + b + c + d + e + f = g - i + h ) 2,186 1,807 21%
(88) 735 (42) ns of which net acquisitions of assets sales ( g - i ) 647 477 36%
142 736 45 x3.2 Acquisitions ( g ) 878 582 51%
230 1 87 x2.6 Assets sales ( i ) 231 105 x2.2
(35) ns Change in debt from renewable projects (partner share) (38) ns
596 943 753 -21% of which organic investments ( h ) 1,539 1,330 16%
- - - ns Capitalized exploration - - ns
239 305 182 31% Increase in non-current loans 544 345 58%
(31) (61) (11) ns Repayment of non-current loans, excluding organic loan repayment from equity (92) (132) ns
affiliates
- - - ns Change in debt from renewable projects (TotalEnergies share) - - ns
*Change in debt from renewable projects (TotalEnergies share and partner
share)
1.4 Refining & Chemicals
2(nd) quarter 1(st) quarter 2(nd) quarter 2(nd) quarter 2024 vs (in millions of dollars) 6 months 6 months 6 months 2024 vs
2024 2024 2023 2(nd) quarter 2023 2024 2023 6 months 2023
316 397 437 -28% Cash flow used in investing activities ( a ) 713 654 9%
- - - ns Other transactions with non-controlling interests ( b ) - - ns
(29) 2 2 ns Organic loan repayment from equity affiliates ( c ) (27) (12) ns
- - - ns Change in debt from renewable projects financing ( d ) * - - ns
- - - ns Capex linked to capitalized leasing contracts ( e ) - - ns
- - - ns Expenditures related to carbon credits ( f ) - - ns
287 399 439 -35% Net investments ( a + b + c + d + e + f = g - i + h ) 686 642 7%
(95) (20) (15) ns of which net acquisitions of assets sales ( g - i ) (115) (10) ns
26 9 27 -4% Acquisitions ( g ) 35 31 13%
121 29 42 x2.9 Assets sales ( i ) 150 41 x3.7
- - - ns Change in debt from renewable projects (partner share) - - ns
382 419 454 -16% of which organic investments ( h ) 801 652 23%
- - - ns Capitalized exploration - - ns
58 7 27 x2.1 Increase in non-current loans 65 38 71%
(3) (7) (8) ns Repayment of non-current loans, excluding organic loan repayment from equity (10) (16) ns
affiliates
- - - ns Change in debt from renewable projects (TotalEnergies share) - - ns
*Change in debt from renewable projects (TotalEnergies share and partner
share)
Alternative Performance Measures (Non-GAAP)
TotalEnergies
(unaudited)
1.5 Marketing & Services
2(nd) quarter 1(st) quarter 2(nd) quarter 2(nd) quarter 2024 vs (in millions of dollars) 6 months 6 months 6 months 2024 vs
2024 2024 2023 2(nd) quarter 2023 2024 2023 6 months 2023
337 (1,137) 228 48% Cash flow used in investing activities ( a ) (800) 86 ns
- - - ns Other transactions with non-controlling interests ( b ) - - ns
- - - ns Organic loan repayment from equity affiliates ( c ) - - ns
- - - ns Change in debt from renewable projects financing ( d ) * - - ns
- - - ns Capex linked to capitalized leasing contracts ( e ) - - ns
- - - ns Expenditures related to carbon credits ( f ) - - ns
337 (1,137) 228 48% Net investments ( a + b + c + d + e + f = g - i + h ) (800) 86 ns
151 (1,238) (4) ns of which net acquisitions of assets sales ( g - i ) (1,087) (238) ns
17 2 7 x2.4 Acquisitions ( g ) 19 7 x2.7
(134) 1,240 11 ns Assets sales ( i ) 1,106 245 x4.5
ns Change in debt from renewable projects (partner share) ns
186 101 232 -20% of which organic investments ( h ) 287 324 -11%
- - - ns Capitalized exploration - - ns
57 11 26 x2.2 Increase in non-current loans 68 37 84%
(53) (26) (12) ns Repayment of non-current loans, excluding organic loan repayment from equity (79) (51) ns
affiliates
- - - ns Change in debt from renewable projects (TotalEnergies share) - - ns
*Change in debt from renewable projects (TotalEnergies share and partner
share)
2. Reconciliation of cash flow from operating activities to CFFO
2.1 Exploration & Production
2(nd) quarter 1(st) quarter 2(nd) quarter 2(nd) quarter 2024 vs (in millions of dollars) 6 months 6 months 6 months 2024 vs
2024 2024 2023 2(nd) quarter 2023 2024 2023 6 months 2023
4,535 3,590 4,047 12% Cash flow from operating activities ( a ) 8,125 8,583 -5%
182 (888) (317) ns (Increase) decrease in working capital ( b ) (706) (688) ns
- - - ns Inventory effect ( c ) - - ns
- - - ns Capital gain from renewable project sales ( d ) - - ns
- - - ns Organic loan repayments from equity affiliates ( e ) - - ns
4,353 4,478 4,364 ns Cash flow from operations excluding working capital (CFFO) ( f = a - b - c + d 8,831 9,271 -5%
+ e )
Alternative Performance Measures (Non-GAAP)
TotalEnergies
(unaudited)
2.2 Integrated LNG
2(nd) quarter 1(st) quarter 2(nd) quarter 2(nd) quarter 2024 vs (in millions of dollars) 6 months 6 months 6 months 2024 vs
2024 2024 2023 2(nd) quarter 2023 2024 2023 6 months 2023
431 1,710 1,332 -68% Cash flow from operating activities ( a ) 2,141 4,868 -56%
(789) 363 (469) ns (Increase) decrease in working capital ( b ) * (426) 987 ns
- - - ns Inventory effect ( c ) - - ns
- - - ns Capital gain from renewable project sales ( d ) - - ns
- 1 - ns Organic loan repayments from equity affiliates ( e ) 1 2 -50%
1,220 1,348 1,801 -32% Cash flow from operations excluding working capital (CFFO) ( f = a - b - c + d 2,568 3,882 -34%
+ e )
*Changes in working capital are presented excluding the mark-to-market effect
of Integrated LNG and Integrated Power sectors’ contracts.
2.3 Integrated Power
2(nd) quarter 1(st) quarter 2(nd) quarter 2(nd) quarter 2024 vs (in millions of dollars) 6 months 6 months 6 months 2024 vs
2024 2024 2023 2(nd) quarter 2023 2024 2023 6 months 2023
1,647 (249) 2,284 -28% Cash flow from operating activities ( a ) 1,398 999 40%
1,024 (941) 1,844 -44% (Increase) decrease in working capital ( b ) * 83 129 -36%
- - ns Inventory effect ( c ) - - ns
- - 35 ns Capital gain from renewable project sales ( d ) - 38 ns
- - 16 ns Organic loan repayments from equity affiliates ( e ) - 22 ns
623 692 491 27% Cash flow from operations excluding working capital (CFFO) ( f = a - b - c + d 1,315 931 41%
+ e )
* Changes in working capital are presented excluding the mark-to-market effect
of Integrated LNG and Integrated Power sectors’ contracts.
Alternative Performance Measures (Non-GAAP)
TotalEnergies
(unaudited)
2.4 Refining & Chemicals
2(nd) quarter 1(st) quarter 2(nd) quarter 2(nd) quarter 2024 vs (in millions of dollars) 6 months 6 months 6 months 2024 vs
2024 2024 2023 2(nd) quarter 2023 2024 2023 6 months 2023
1,541 (2,129) 1,923 -20% Cash flow from operating activities ( a ) (588) 1,072 ns
788 (3,526) 788 ns (Increase) decrease in working capital ( b ) (2,738) (1,395) ns
(393) 108 (192) ns Inventory effect ( c ) (285) (607) ns
- - - ns Capital gain from renewable project sales ( d ) - - ns
(29) 2 2 ns Organic loan repayments from equity affiliates ( e ) (27) (12) ns
1,117 1,291 1,329 -16% Cash flow from operations excluding working capital (CFFO) ( f = a - b - c + d 2,408 3,062 -21%
+ e )
2.5 Marketing & Services
2(nd) quarter 1(st) quarter 2(nd) quarter 2(nd) quarter 2024 vs (in millions of dollars) 6 months 6 months 6 months 2024 vs
2024 2024 2023 2(nd) quarter 2023 2024 2023 6 months 2023
1,650 (108) 665 x2.5 Cash flow from operating activities ( a ) 1,542 (8) ns
1,066 (604) (31) ns (Increase) decrease in working capital ( b ) 462 (1,073) ns
(75) 17 (60) ns Inventory effect ( c ) (58) (147) ns
- - - ns Capital gain from renewable project sales ( d ) - - ns
- - - ns Organic loan repayments from equity affiliates ( e ) - - ns
659 479 756 -13% Cash flow from operations excluding working capital (CFFO) ( f = a - b - c + d 1,138 1,212 -6%
+ e )
Alternative Performance Measures (Non-GAAP)
TotalEnergies
(unaudited)
3. Reconciliation of capital employed (balance sheet) and calculation of ROACE
(In millions of dollars) Exploration Integrated Integrated Power Refining Marketing Corporate Intercompany Company
&
LNG
&
&
Production
Chemicals
Services
Adjusted net operating income 2(nd) quarter 2024 2,667 1,152 502 639 379 (253) - 5,086
Adjusted net operating income 1(st) quarter 2024 2,550 1,222 611 962 255 (90) - 5,510
Adjusted net operating income 4(th) quarter 2023 2,802 1,456 527 633 306 (178) - 5,546
Adjusted net operating income 3(rd) quarter 2023 3,138 1,342 506 1,399 423 80 - 6,888
Adjusted net operating income ( a ) 11,157 5,172 2,146 3,633 1,363 (441) - 23,030
Balance sheet as of June 30, 2024
Property plant and equipment intangible assets net 84,754 24,936 14,078 11,987 6,476 649 - 142,880
Investments & loans in equity affiliates 3,463 15,294 8,921 4,122 1,000 - - 32,800
Other non-current assets 3,803 2,424 1,147 731 1,224 214 - 9,543
Inventories, net 1,486 1,495 577 12,822 3,809 - - 20,189
Accounts receivable, net 6,432 5,526 4,766 20,755 8,940 1,073 (26,845) 20,647
Other current assets 6,497 7,876 4,797 2,146 3,141 7,313 (11,756) 20,014
Accounts payable (6,984) (6,429) (5,653) (33,025) (10,387) (775) 26,804 (36,449)
Other creditors and accrued liabilities (8,785) (8,614) (4,989) (6,082) (5,762) (11,007) 11,797 (33,442)
Working capital (1,354) (146) (502) (3,384) (259) (3,396) - (9,041)
Provisions and other non-current liabilities (24,947) (3,800) (1,807) (3,467) (1,207) 653 - (34,575)
Assets and liabilities classified as held for sale - Capital employed 90 - 24 - - - - 114
Capital Employed (Balance sheet) 65,809 38,708 21,861 9,989 7,234 (1,880) - 141,721
Less inventory valuation effect (1,261) (280) (1,541)
Capital Employed at replacement cost ( b ) 65,809 38,708 21,861 8,728 6,954 (1,880) - 140,180
Balance sheet as of June 30, 2023
Property plant and equipment intangible assets net 85,184 24,341 7,587 11,637 6,518 624 - 135,891
Investments & loans in equity affiliates 2,589 13,441 9,599 4,237 559 - - 30,425
Other non-current assets 2,051 2,978 433 702 1,109 140 - 7,413
Inventories, net 1,550 1,202 678 11,483 3,872 - - 18,785
Accounts receivable, net 6,291 8,030 5,838 18,170 8,717 1,741 (26,624) 22,163
Other current assets 5,685 11,503 8,197 2,310 3,130 5,344 (13,058) 23,111
Accounts payable (6,242) (9,086) (5,149) (27,385) (10,090) (1,372) 26,471 (32,853)
Other creditors and accrued liabilities (9,381) (13,998) (8,224) (6,440) (4,743) (9,033) 13,211 (38,608)
Working capital (2,097) (2,349) 1,340 (1,862) 886 (3,320) - (7,402)
Provisions and other non-current liabilities (24,793) (3,917) (1,282) (3,723) (1,191) 502 - (34,404)
Assets and liabilities classified as held for sale - Capital employed 5,596 104 127 87 1,243 - - 7,157
Capital Employed (Balance sheet) 68,530 34,598 17,804 11,078 9,124 (2,054) - 139,080
Less inventory valuation effect (1,380) (328) (1,708)
Capital Employed at replacement cost ( c ) 68,530 34,598 17,804 9,698 8,796 (2,054) - 137,372
ROACE as a percentage ( a / average ( b + c )) 16.6% 14.1% 10.8% 39.4% 17.3% 16.6%
Alternative Performance Measures (Non-GAAP)
TotalEnergies
(unaudited)
4. Reconciliation of consolidated net income to adjusted net operating income
(in millions of dollars) 2(nd) quarter 1(st) quarter 2(nd) quarter 6 months 6 months
2024 2024 2023 2024 2023
Consolidated net income ( a ) 3,847 5,804 4,152 9,651 9,783
Net cost of net debt ( b ) (365) (285) (245) (650) (538)
Special items affecting net operating income (256) 792 (449) 536 (616)
Gain (loss) on asset sales (110) 1,507 - 1,397 203
Restructuring charges (11) - (5) (11) (5)
Impairments - (644) (469) (644) (529)
Other (135) (71) 25 (206) (285)
After-tax inventory effect : FIFO vs. replacement cost (327) 107 (377) (220) (768)
Effect of changes in fair value (291) (320) (111) (611) (545)
Total adjustments affecting net operating income ( c ) (874) 579 (937) (295) (1,929)
Adjusted net operating income ( a - b - c ) 5,086 5,510 5,334 10,596 12,250
TotalEnergies
Media Relations: +33 (0)1 47 44 46 99 l presse@totalenergies.com
(mailto:presse@totalenergies.com) l @TotalEnergiesPR
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Ftwitter.com%2FTotalEnergiesPR&esheet=54099235&newsitemid=20240724325948&lan=en-US&anchor=%40TotalEnergiesPR&index=7&md5=b4f89bc8b5aedf26fc32a90e490efaa1)
Investor Relations: +33 (0)1 47 44 46 46 l ir@totalenergies.com
(mailto:ir@totalenergies.com)
View source version on businesswire.com:
https://www.businesswire.com/news/home/20240724325948/en/
(https://www.businesswire.com/news/home/20240724325948/en/)
TotalEnergies
Copyright Business Wire 2024Recent news on TotalEnergies SE
See all newsREG-TotalEnergies SE Transaction in Own Shares
AnnouncementREG-TotalEnergies SE Director/PDMR Shareholding
AnnouncementREG-TotalEnergies SE Total Voting Rights
AnnouncementREG-TotalEnergies SE Argentina: TotalEnergies Divests Its Interest in Two Vaca Muerta Unconventional Blocks
AnnouncementREG-TotalEnergies SE Transaction in Own Shares
Announcement